# In the matter of State Bank of India Vs. Jagtar Singh, IB-899/ND/2022

> NCLT judgment dated 2023-02-23. Citation: TCN-2023-NCLT-04487. The State Bank of India filed an application under Section 95 of the IBC, 2016, seeking to…

- **Court:** NCLT
- **Order date:** 23 Feb 2023
- **Citation:** TCN-2023-NCLT-04487
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-jagtar-singh-ib-899nd2022-a71fc8e7

## Summary

### Background

The State Bank of India filed an application under Section 95 of the IBC, 2016, seeking to initiate the Insolvency Resolution (IR) process against Sh. Jagtar Singh, the Respondent. The Applicant's counsel stated that the guarantee in question was invoked via a letter dated 19.12.2016. The applicant also issued a demand notice to the respondent, which was duly served.

## Facts

The State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Insolvency Resolution (IR) process against Sh. Jagtar Singh, the Respondent, who is a personal guarantor. SBI invoked the guarantee via a letter dated 19.12.2016 and served a demand notice to the Respondent. Upon filing the application, an interim moratorium commenced as per Section 96(1)(a) of the IBC. The court appointed Mr. Vivek Parti as the Resolution Professional (RP) to examine the application and make recommendations. The relevance of the guarantee invocation and demand notice is to establish the debt and default, triggering the insolvency process. The interim moratorium is crucial as it provides a standstill period to allow the

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## Issues and analysis

### Issue 1: Whether the application under Section 95 of the IBC, 2016, filed by State Bank of India against the …

**Ratio:** Section 95 of the IBC, 2016 allows a creditor to initiate the insolvency resolution

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**Reasoning:** The court considered the application filed by the State Bank of India under Section 95 of

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**Interpretation:** Section 95 provides a mechanism for creditors to recover debts from personal

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**Application:** The State Bank of India, as a creditor, filed the application against Sh.

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## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** State Bank of…
- **Respondents:** Sh. Jagtar…

## Timeline

- **2016-12-19 — Guarantee Inv…**: The guarantee in issue was invoked…
- **2023-02-23 — Order Del…**: Order delivered on 23.02.2023, appointing Mr.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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