# In the matter of State Bank of India Vs. K M Sebastine, CP (IB)/492/ND/2022

> NCLT judgment dated 2022-12-09. Citation: TCN-2022-NCLT-00194. The State Bank of India filed an application under Section 95 of the IBC, 2016 against the…

- **Court:** NCLT
- **Order date:** 9 Dec 2022
- **Citation:** TCN-2022-NCLT-00194
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-k-m-sebastine-cp-099a6ca1

## Summary

### Background

The State Bank of India filed an application under Section 95 of the IBC, 2016 against the Personal Guarantor, Mr. K M Sebastine, seeking initiation of the Insolvency Resolution Process and appointment of a Resolution Professional. The applicant stated that the guarantee given by the applicant was invoked by issuing a loan recall cum demand notice dated 26.08.2014.

## Facts

The State Bank of India filed an application under Section 95 of the IBC, 2016 against Mr. K M Sebastine, who is the Personal Guarantor. The application seeks the initiation of the Insolvency Resolution Process and the appointment of a Resolution Professional. The State Bank of India invoked the guarantee given by the applicant by issuing a loan recall cum demand notice dated 26.08.2014. Upon filing the application, an interim moratorium has commenced under Section 96(1)(a) of the IBC, 2016, in relation to all debts of the Personal Guarantor. The court appointed Shri Prabhat Ranjan Singh as the Resolution Professional.

## Issues and analysis

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

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

…

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

…

**Interpretation:** Section 95 of the IBC, 2016 provides a mechanism for creditors to initiate

…

**Application:** The State Bank of India, being a creditor, filed an application under Section

…

## Parties

- **Judges:** SHRI. ASHOK KUMAR…; SHRI. L. N.…
- **Appellants:** State Bank of…
- **Respondents:** K.M. Seba…

## Timeline

- **2014-08-26 — Loan Recall Cum Demand…**: State Bank of India invoked the guarantee by…
- **2022-12-09 — Order Del…**: Order delivered by the NCLT,…

## 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-k-m-sebastine-cp-099a6ca1