# In the matter of State Bank of India Vs. Jai Bhagwan Bindal, CP (IB) No-488(ND)/2022

> NCLT judgment dated 2022-12-20. Citation: TCN-2022-NCLT-00100. State Bank of India filed an application under Section 95(1) of the IBC, 2016, seeking to…

- **Court:** NCLT
- **Order date:** 20 Dec 2022
- **Citation:** TCN-2022-NCLT-00100
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-jai-bhagwan-bindal-cp-8cdad277

## Summary

### Background

State Bank of India filed an application under Section 95(1) of the IBC, 2016, seeking to initiate the Insolvency Resolution Process (IRP) against Mr. Jai Bhagwan Bindal, the Respondent. The Applicant claimed to have issued a demand notice to the Respondent, which was duly served. The Applicant also invoked a Bank Guarantee vide letter dated 15.03.2019. Upon filing the application, an interim moratorium commenced as per Section 96(1)(a) of the IBC, in relation to all debts of the Personal Guarantor.

## Facts

State Bank of India (SBI) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Insolvency Resolution Process (IRP) against Mr. Jai Bhagwan Bindal. SBI claimed to have served a demand notice to Mr. Bindal, and had also invoked a bank guarantee via a letter dated 15.03.2019. Upon filing the application, an interim moratorium was automatically triggered under Section 96(1)(a) of the IBC, pertaining to the debts of the personal guarantor. The application was filed before the National Company Law Tribunal (NCLT), New Delhi Bench. The court appointed Mr. Vijender Sharma as the Resolution Professional (RP).

## Issues and analysis

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

**Ratio:** Section 95(1) of the IBC, 2016, allows a creditor to file an application for initiating

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**Reasoning:** The court considered the application filed by State Bank of India and the submissions

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**Interpretation:** Section 95(1) of the IBC provides a mechanism for creditors to initiate

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**Application:** The court applied Section 95(1) of the IBC to the facts of the case,

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## Parties

- **Judges:** Sh. Ashok Kumar…; SHRI. L. N.…
- **Appellants:** State Bank of…
- **Respondents:** Jai Bhagwan…

## Timeline

- **2019-03-15 — Bank Guarantee…**: State Bank of India invoked the Bank…
- **2022-12-20 — Order Del…**: Order delivered on 20.12.2022, appointing Mr. Vijender Sharma as the Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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