# In the matter of State Bank of India vs. Kuldipsingh Anopsingh Chudasma

> NCLT judgment dated 2024-03-07. Citation: TCN-2024-NCLT-02138. State Bank of India (Financial Creditor) filed an application under Section 95 of the…

- **Court:** NCLT
- **Order date:** 7 Mar 2024
- **Citation:** TCN-2024-NCLT-02138
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-kuldipsingh-anopsingh-chudasma-718cb8f8

## Summary

### Background

State Bank of India (Financial Creditor) filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Insolvency Resolution Process against Mr. Kuldipsingh Anopsingh Chudasma, the Personal Guarantor of the Corporate Debtor, M/s. Yogiraj Ginning and Oil Industries Pvt Ltd., for a default of Rs.24,41,53,898.12. Credit facilities were sanctioned to the Corporate Debtor as per a letter of arrangement dated 07.01.2012 and were renewed periodically. The Respondent executed a personal guarantee in favor of the applicant for securing these credit facilities. The Corporate Debtor defaulted, leading to its account becoming a Non-Performing Asset (NPA) on 27.09.2018. The applicant issued a notice under Section 13(2) of the SARFAESI Act.

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## Facts

State Bank of India (SBI) extended credit facilities to Yogiraj Ginning and Oil Industries Pvt Ltd, with Kuldipsingh Anopsingh Chudasma acting as the personal guarantor. The initial arrangement was formalized on 07.01.2012, and the facilities were periodically renewed and enhanced. Chudasma provided a personal guarantee to secure these facilities. The Corporate Debtor defaulted on repayments, leading to the account being classified as a Non-Performing Asset (NPA) on 27.09.2018. SBI issued a notice under Section 13(2) of the SARFAESI Act to both the Corporate Debtor and Chudasma. SBI also initiated proceedings under Section 7 of the IBC against the Corporate Debtor, which were admitted, and liquidation proceedings are currently pending. SBI claims the debt was due on

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** The obligation of the guarantor is co-extensive and co-terminus with that of the

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**Reasoning:** The court considered different dates of default mentioned by the applicant. If the date

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**Interpretation:** The limitation period for initiating insolvency proceedings against a personal

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**Application:** The court found that the application was not within the period of limitation

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## Parties

- **Judges:** Chitra Ha…; V. G. Venkata…
- **Appellants:** State Bank of…
- **Respondents:** Yogiraj Ginning…; Kuldipsingh…

## Timeline

- **2012-01-07 — Letter of Arr…**: Credit facilities were sanctioned to the…
- **2018-09-27 — Account classified as…**: The Corporate Debtor's account was…

## 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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