# In the matter of State Bank of India Vs. Ms. Sunku Vasundhara, IBA/720/2020

> NCLT judgment dated 2022-03-11. Citation: TCN-2022-NCLT-03776. The case pertains to an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Mar 2022
- **Citation:** TCN-2022-NCLT-03776
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-ms-sunku-vasundhara-iba7202020-356c5c36

## Summary

### Background

The case pertains to an application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Mrs. Sunku Vasundhara, the personal guarantor of M/s. Nathella Sampath Jewelry Private Limited, the Corporate Debtor, which is under liquidation. The application was filed by State Bank of India, the Financial Creditor. 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.

## Facts

State Bank of India (SBI), the Financial Creditor, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016 against Mrs. Sunku Vasundhara, the personal guarantor of M/s. Nathella Sampath Jewelry Private Limited, the Corporate Debtor. The Corporate Debtor is already under liquidation. The date of default is 04.02.2018. A demand notice was issued to the Personal Guarantor on 28.08.2020. The application seeks initiation of insolvency resolution process against the personal guarantor. The Adjudicating Authority considered the application and the judgment of the NCLAT, which mandates action on applications filed under Section 95 of IBC, 2016.

## Issues and analysis

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

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016 allows a creditor to file an

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**Reasoning:** The Adjudicating Authority considered the application filed by the Financial Creditor

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**Interpretation:** Section 95(1) provides a mechanism for creditors to pursue insolvency

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**Application:** The application was filed against Mrs. Sunku Vasundhara, the personal guarantor

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## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Respondents:** Nathella Sampath…; SUNKU VASU…

## Timeline

- **2018-02-04 — Date of D…**: The date of default as stated in…
- **2020-08-28 — Demand Notice…**: The Demand Notice issued under Rule 7(1) of the Insolvency and Bankruptcy Rules, 2019 to…

## 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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