# In the matter of State Bank of India Vs. Ms. K Suresh Reddy, CP (IB)/130/2022

> NCLT judgment dated 2022-04-20. Citation: TCN-2022-NCLT-03178. The case pertains to a Company Petition IB/130/2022 under Section 95 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 20 Apr 2022
- **Citation:** TCN-2022-NCLT-03178
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-ms-k-suresh-reddy-cp-52b9599f

## Summary

### Background

The case pertains to a Company Petition IB/130/2022 under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The hearing was held on April 20, 2022, via video conference. State Bank of India is the petitioner, and Ms. K. Suresh Reddy & Chadalvada Infratech Ltd. are the respondents.

## Facts

State Bank of India filed a Company Petition (IB/130/2022) against Ms. K. Suresh Reddy & Chadalvada Infratech Ltd. under Section 95 of the IBC, 2016. The court initiated an interim moratorium under Section 96(1)(a) of the I&B Code, 2016, which stays any legal action or proceeding pending in respect of any debt. Shri Maligi Madhusudhana Reddy was appointed as the IRP and is required to file a report under Section 99 of the I&B Code, 2016, within 10 days. The petitioner's counsel is directed to issue notice to the respondents and file proof of service. The matter is adjourned to 13.05.2022.

## Issues and analysis

### Issue 1: Whether an interim moratorium should be initiated …

**Ratio:** Section 96(1)(a) of the I&B Code, 2016, provides for the commencement of an interim

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**Reasoning:** The court noted that the application was filed, triggering the commencement of the

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**Interpretation:** Section 96(1)(a) is interpreted to mean that upon filing of an application

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**Application:** Since the application was filed by State Bank of India, the interim moratorium

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** State Bank of…
- **Respondents:** Chadalvada…; K. Suresh…

## Timeline

- **2022-04-20 — Hearing…**: Hearing held on April 20, 2022, at…
- **2022-04-20 — Interim Moratorium…**: Interim moratorium commences from the date of filing of the application under section…

## 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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