# In the matter of State Bank of India vs. Jugal Kishore Agarwal

> NCLT judgment dated 2024-04-02. Citation: TCN-2024-NCLT-01866. The case involves a petition filed by State Bank of India under Section 95(1) of the Insolvency…

- **Court:** NCLT
- **Order date:** 2 Apr 2024
- **Citation:** TCN-2024-NCLT-01866
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-jugal-kishore-agarwal-9a2975d4

## Summary

### Background

The case involves a petition filed by State Bank of India under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Jugal Kishore Agarwal, the personal guarantor to Adhunik Alloys & Power Limited (the Corporate Debtor). The Corporate Debtor had availed various credit facilities from the State Bank of India, and Jugal Kishore Agarwal had provided a personal guarantee for the repayment of these facilities. The Corporate Debtor defaulted on its repayment obligations, leading to the account being classified as a non-performing asset (NPA). The applicant seeks initiation of insolvency resolution process against the respondent/guarantor.

## Facts

State Bank of India (SBI) filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, against Jugal Kishore Agarwal, who is the personal guarantor for Adhunik Alloys & Power Limited (Corporate Debtor). SBI, a banking company, extended various credit facilities to the Corporate Debtor on 23.09.2011, including a Cash Credit Facility, based on representations made by the Corporate Debtor. As per the Credit Facility agreement, the Corporate Debtor was obligated to repay the principal sum of the loan along with interest. Jugal Kishore Agarwal executed a Deed of Guarantee on 23.09.2011. The Corporate Debtor and the Personal Guarantor failed to make payments as per the Facility Agreement, leading SBI to classify the account as a non-performing

…

## Issues and analysis

### Issue 1: Whether the application filed by State Bank of India under Section 95(1) of the Insolvency and …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016, allows a creditor to file an

…

**Reasoning:** The court considered the factual matrix, including the credit facilities extended to the

…

**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

…

**Application:** In this case, State Bank of India, as the creditor, filed an application

…

## Parties

- **Judges:** Rohit K…; Balraj…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** Adhunik Alloys &…; Jugal Kishore…
- **Advocates:** Deepanjan Dutta…; Sanjana…; +3 more

## Timeline

- **2011-09-23 — Credit Facilities…**: State Bank of India extended various credit…
- **2011-09-23 — Deed of Guarantee…**: Jugal Kishore Agarwal executed a Deed of…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-jugal-kishore-agarwal-9a2975d4