# In the matter of State Bank of India Vs. Kanak Biyani, CP (IB) No. 50/95/JPR/2021

> NCLT judgment dated 2022-05-30. Citation: TCN-2022-NCLT-02548. The State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 30 May 2022
- **Citation:** TCN-2022-NCLT-02548
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-kanak-biyani-cp-32af45a2

## Summary

### Background

The State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) seeking the commencement of the Insolvency Resolution Process (IRP) against Shri Kanak Biyani, the personal guarantor of the corporate debtor, M/s Saga Automotive (I) Private Limited, for an amount of Rs. 28,36,04,727.55. The application was filed due to the failure of the personal guarantor to repay the debt owed to the financial creditor. The Resolution Professional (RP) was appointed to file a report under Section 99 of the IBC, which recommended the admission of the application.

## Facts

State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) against Shri Kanak Biyani, the personal guarantor of M/s Saga Automotive (I) Private Limited, for a debt of Rs. 28,36,04,727.55. The application was based on the failure of the personal guarantor to repay the debt. SBI had extended credit facilities to M/s Saga Automotive (I) Private Limited, for which Shri Kanak Biyani provided a personal guarantee. A demand notice was served on the personal guarantor on 29.06.2020, but no repayment was made. The Resolution Professional (RP) sent communications to the personal guarantor, who admitted to making a partial payment of Rs. 7.25 Crores in 2017 but no further payments. The RP filed a report recommending the admission

…

## Issues and analysis

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

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

…

**Reasoning:** The court considered the documents submitted by the applicant, including the loan

…

**Interpretation:** Section 95 is interpreted to provide a mechanism for creditors to recover debts

…

**Application:** The court applied Section 95 to the facts of the case and found that the

…

## Parties

- **Judges:** Deep Chandr…; RAGHU N…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** M/s Saga Automotiv…; Kanak B…

## Timeline

- **2020-06-29 — Demand N…**: Demand notice served on the Personal Guarantor by the Financial Creditor for repayment of…
- **2020-03-04 — CIRP Init…**: Order passed by the Adjudicating Authority…

## 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)

---

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-kanak-biyani-cp-32af45a2