# In the matter of State Bank of India Vs. Mr. A N Vijay Raghavan, CP (IB) No. 399/95/HDB/2020

> NCLT judgment dated 2022-03-31. Citation: TCN-2022-NCLT-03451. The petition was filed by State Bank of India (Financial Creditor) under Section 95 of the…

- **Court:** NCLT
- **Order date:** 31 Mar 2022
- **Citation:** TCN-2022-NCLT-03451
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-mr-a-n-vijay-raghavan-cp-c345d3dc

## Summary

### Background

The petition was filed by State Bank of India (Financial Creditor) under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency & Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019. The petition seeks an order for the initiation of the Insolvency Resolution Process against Shri A.N. Vijaya Raghavan, who is the Personal Guarantor of PPS Enviro Power Private Limited. The corporate debtor availed credit facilities amounting to Rs. 225.94 crores from the Financial Creditor/SBI and its associate banks.

## Facts

State Bank of India (SBI), the Financial Creditor, filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mr. A.N. Vijaya Raghavan, the Personal Guarantor of PPS Enviro Power Private Limited (Corporate Debtor). The Corporate Debtor had availed credit facilities amounting to Rs. 225.94 crores from SBI and its associate banks. The Corporate Debtor defaulted on the repayment of the financial assistance, with an outstanding debt of Rs. 237,84,44,380.77 as of 06.12.2017. The accounts of the Corporate Debtor were classified as Non-Performing Asset (NPA) on 26.12.2015. A recall notice was issued to the Personal Guarantor on 11.10.2017, demanding payment by 21.10.2017, making the date of default 22.10.2017. The Financial Creditor issued a demand

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## Issues and analysis

### Issue 1: Whether the petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, for initiating …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Tribunal observed that the Corporate Debtor defaulted on its debt, and the Personal

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

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**Application:** In this case, the Corporate Debtor defaulted on its debt, and the Personal

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## Parties

- **Judges:** N. Venkata…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** PPS Enviro Power…; A.N. Vijaya…

## Timeline

- **2015-12-26 — NPA Classif…**: Accounts of the Corporate Debtor were…
- **2017-10-11 — Recall N…**: Recall notice issued to the…

## 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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