# In the matter of State Bank of India Vs. Mr. S Ashok, IBA/614/2020

> NCLT judgment dated 2022-02-18. Citation: TCN-2022-NCLT-04071. The case involves an application filed by State Bank of India (SBI) under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 18 Feb 2022
- **Citation:** TCN-2022-NCLT-04071
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-mr-s-ashok-iba6142020-4c0231b7

## Summary

### Background

The case involves an application filed by State Bank of India (SBI) under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016 against Mr. S. Ashok, the personal guarantor of M/s. MPL Cars Private Limited, the Corporate Debtor. MPL Cars Private Limited is under liquidation, and an order for its liquidation was previously passed by the Adjudicating Authority on 27.01.2021 in IA/264/IB/2020.

## Facts

State Bank of India (SBI) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016 against Mr. S. Ashok, who is the personal guarantor for M/s. MPL Cars Private Limited. M/s. MPL Cars Private Limited, the Corporate Debtor, is currently under liquidation, with a liquidation order passed by the Adjudicating Authority on 27.01.2021 in IA/264/IB/2020. The date of default, as stated in the application, is 05.12.2012. A demand notice was issued to the personal guarantor on 10.03.2020 under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. The application seeks to initiate insolvency resolution proceedings against the

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## Issues and analysis

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

**Ratio:** The NCLAT, Principal Bench, in the matter of Mr. Ravi Ajit Kulkarni -Vs- State Bank of

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**Reasoning:** The Adjudicating Authority relies on the precedent set by the NCLAT, which mandates that

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**Interpretation:** Section 95 of the IBC, 2016 provides for the initiation of insolvency

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**Application:** In this case, SBI has filed an application under Section 95 of the IBC, 2016

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** State Bank of…
- **Respondents:** M/s. MPL Cars…; S. As…

## Timeline

- **2021-01-27 — Liquidation…**: An order for the liquidation of M/s. MPL Cars Private Limited was passed by the…
- **2012-12-05 — Date of D…**: The date of default as stated in…

## 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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