# In the matter of State Bank of India Vs. Mukesh Garg, CP (IB) No. 325(ND)/2022

> NCLT judgment dated 2022-12-16. Citation: TCN-2022-NCLT-00141. The case pertains to a petition filed by the State Bank of India (SBI) under Section 95(1) of…

- **Court:** NCLT
- **Order date:** 16 Dec 2022
- **Citation:** TCN-2022-NCLT-00141
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-mukesh-garg-cp-1184dbac

## Summary

### Background

The case pertains to a petition filed by the State Bank of India (SBI) under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution process for Personal Guarantors to Corporate Debtor) Rules, 2019, and Regulation 4(2) of IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019. The petition seeks to initiate the Insolvency Resolution Process against Mukesh Garg, the personal guarantor of the corporate debtor, M/s Alupan Composite Panels Pvt. Ltd. SBI, through its resolution professional, Vivek Parti, initiated the process due to a default in payment.

## Facts

State Bank of India (SBI) filed a petition against Mukesh Garg, who is the personal guarantor for the corporate debtor, M/s Alupan Composite Panels Pvt. Ltd. The petition was filed under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Insolvency Resolution Process. SBI served a statutory notice of demand to Mukesh Garg on 16.07.2021, demanding a payment of Rs. 37,49,65,845.97/- as on 30.06.2021. The guarantee had been invoked by SBI. Mukesh Garg failed to reply to the notice or make any payment. SBI provided proof of service of the statutory notice to the Tribunal. The applicant proposed Vivek Parti as the Resolution Professional.

## Issues and analysis

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

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

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**Reasoning:** The Tribunal considered the provisions of Section 95(1) of the IBC and the related rules

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**Interpretation:** Section 95(1) of the IBC is interpreted to provide a mechanism for creditors to

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**Application:** The Tribunal applied Section 95(1) to the facts of the case, where SBI, as a

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## Parties

- **Judges:** SH. BACHU VENKAT…; SH. RAHUL…
- **Appellants:** State Bank of…
- **Respondents:** M/s Alupan…; Mukesh…

## Timeline

- **2021-07-13 — Statutory Notice of…**: A statutory notice of…
- **2021-07-16 — Service of Statutory…**: The Personal Guarantor, Mr. Mukesh Garg, was duly served by the Petitioner through speed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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