# In the matter of State Bank of India vs. M Haranandha Babu

> NCLT judgment dated 2023-07-06. Citation: TCN-2023-NCLT-02633. The case involves an application filed by the Financial Creditor seeking closure of proceedings…

- **Court:** NCLT
- **Order date:** 6 Jul 2023
- **Citation:** TCN-2023-NCLT-02633
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-m-haranandha-babu-b4f46a92

## Summary

### Background

The case involves an application filed by the Financial Creditor seeking closure of proceedings in Company Petition IB/107/2022 and leave to file a petition to declare the Personal Guarantor as bankrupt. The Tribunal had previously ordered on 2023-01-09 in IA 1583/2022 that the Personal Guarantor be given sufficient opportunity to submit a repayment plan. However, the Personal Guarantor failed to submit any repayment plan.

## Facts

The Financial Creditor filed an application for closure of proceedings in Company Petition IB/107/2022 and sought permission to file a petition to declare the Personal Guarantor bankrupt. The Tribunal had previously ordered on 2023-01-09 in IA 1583/2022 that the Personal Guarantor be given sufficient opportunity to submit a repayment plan. The Personal Guarantor failed to submit any repayment plan. The Resolution Professional confirmed that no repayment plan was received. The Financial Creditor requested initiation of bankruptcy proceedings. The Tribunal considered the facts and circumstances of the case and allowed the Company Petition, granting the Financial Creditor the liberty to take necessary steps under law to declare the Personal Guarantor as bankrupt. The key

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## Issues and analysis

### Issue 1: Whether the Financial Creditor should be granted the liberty to take necessary steps under law to …

**Ratio:** The legal principle applied is that if a personal guarantor fails to comply with the

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**Reasoning:** The court reasoned that the Personal Guarantor's failure to submit a repayment plan,

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**Interpretation:** The interpretation of the law is that the Personal Guarantor has a

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**Application:** In this case, the Personal Guarantor's failure to submit a repayment plan,

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** State Bank of…
- **Respondents:** M. Haranadha Babu…

## Timeline

- **2023-01-09 — Tribunal Order in IA…**: Tribunal order recorded that the Personal Guarantor was given sufficient opportunity to…
- **2023-07-06 — Hearing…**: Hearing held on the application…

## 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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