# In the matter of State Bank of India Vs. Mrs. N Laxmi Priya, IBA/730/2020

> NCLT judgment dated 2022-03-11. Citation: TCN-2022-NCLT-03793. The case pertains to an application filed under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Mar 2022
- **Citation:** TCN-2022-NCLT-03793
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-mrs-n-laxmi-priya-iba7302020-4eb885fc

## Summary

### Background

The case pertains to an application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016, against N Lakshmi Priya, the personal guarantor of M/s. Nathella Sampath Jewelry Private Limited, the Corporate Debtor. The Corporate Debtor is under liquidation, with a common order passed for its liquidation by the Adjudicating Authority on 03.01.2020. The application was filed by State Bank of India, the Financial Creditor.

## Facts

State Bank of India (SBI), the Financial Creditor, filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016 against Mrs. N Lakshmi Priya, the personal guarantor to the Corporate Debtor, M/s. Nathella Sampath Jewelry Private Limited. The Corporate Debtor is already under liquidation, with an order passed on 03.01.2020. The date of default stated in the application is 04.02.2018. A demand notice was issued to the Personal Guarantor on 28.08.2020. The application seeks to initiate insolvency resolution process against the personal guarantor. The Adjudicating Authority considered the application and the documents filed, including the agreements of guarantee and the demand notice. The NCLAT has previously held that the Adjudicating Authority

…

## Issues and analysis

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

**Ratio:** The ratio is based on the NCLAT's ruling that the Adjudicating Authority must act on

…

**Reasoning:** The Adjudicating Authority relied on the NCLAT's decision in Mr. Ravi Ajit Kulkarni –Vs-

…

**Interpretation:** This means that the Adjudicating Authority has a duty to consider and process

…

**Application:** The Adjudicating Authority applied this ratio by considering the application

…

## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Respondents:** Nathella Sampath…; N Lakshmi…

## Timeline

- **2020-01-03 — Liquidation…**: A common order was passed for the liquidation of the Corporate Debtor, M/s. Nathella…
- **2018-02-04 — 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)

---

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-mrs-n-laxmi-priya-iba7302020-4eb885fc