# In the matter of State Bank of India Vs. Mrs. N Radhika, IBA/719/2020

> NCLT judgment dated 2022-03-11. Citation: TCN-2022-NCLT-03778. 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-03778
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-mrs-n-radhika-iba7192020-fad02858

## Summary

### Background

The case pertains to an application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016, and Rule 7(2) of the Insolvency and Bankruptcy Rules, 2019, by State Bank of India (SBI) against the personal guarantor, N Radhika, of M/s. Nathella Sampath Jewelry Private Limited, which is undergoing liquidation. The application seeks to initiate the insolvency resolution process for personal guarantors to corporate debtors. A common order was previously passed for the liquidation of Nathella Sampath Jewelry Private Limited by the Adjudicating Authority on 03.01.2020.

## Facts

State Bank of India (SBI), the financial creditor, filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, against N Radhika, the personal guarantor of M/s. Nathella Sampath Jewelry Private Limited. Nathella Sampath Jewelry Private Limited, the corporate debtor, is undergoing liquidation, with a liquidation order passed on 03.01.2020. The date of default stated in the application is 04.02.2018. Agreements of Guarantee executed by the Personal Guarantor are placed in the typed set filed along with the application. A Demand Notice was issued to the Personal Guarantor on 28.08.2020 under Rule 7(1) of the Insolvency and Bankruptcy Rules, 2019. The application seeks to initiate the insolvency resolution process for personal guarantors to corporate

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## Issues and analysis

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

**Ratio:** The ratio is based on Section 95 of the Insolvency and Bankruptcy Code, 2016, which

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**Reasoning:** The court considered the application filed by SBI and noted that the corporate debtor,

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**Interpretation:** Section 95 of the IBC, 2016, provides a mechanism for creditors to initiate

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**Application:** The court applied the provisions of Section 95 of the IBC, 2016, to the facts

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## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Appellants:** State Bank of…
- **Respondents:** Nathella Sampath…; N RAD…

## Timeline

- **2020-01-03 — Liquidation…**: A common order was passed for the Liquidation of Nathella Sampath Jewelry Private Limited…
- **2018-02-04 — Date of D…**: The date of default as…

## 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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