# In the matter of State Bank of India Vs. N. Amulya Krishna, CP (IB) 26/95/AMR/2022

> NCLT judgment dated 2022-05-30. Citation: TCN-2022-NCLT-02538. The State Bank of India (Financial Creditor) filed a petition against Ms. N. Amulya Krishna…

- **Court:** NCLT
- **Order date:** 30 May 2022
- **Citation:** TCN-2022-NCLT-02538
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-n-amulya-krishna-cp-04d4dc14

## Summary

### Background

The State Bank of India (Financial Creditor) filed a petition against Ms. N. Amulya Krishna (Personal Guarantor/Respondent) to initiate Corporate Insolvency Resolution Process (CIRP) under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The application pertains to the personal guarantee provided by the respondent for the working capital facilities availed by M/s. Prathyusha Resources & Infra Private Limited (Corporate Debtor). The Corporate Debtor defaulted on repayment despite reminders, leading to the filing of an Original Application before the Debt Recovery Tribunal, which is currently pending. An OTS (One Time Settlement) was sanctioned but failed to materialize. Subsequently, a Section 7 petition was filed and admitted by the Tribunal.

## Facts

The Corporate Debtor, M/s. Prathyusha Resources & Infra Private Limited, availed working capital facilities from the State Bank of India (Applicant). The Applicant and Corporate Debtor executed an 'Agreement of Loan for Overall Limit' on 2011-03-24, granting Rs. 50 Crores. Ms. N. Amulya Krishna (Respondent) stood as a Personal Guarantor and executed a Deed of Guarantee on 2011-03-24. The Applicant enhanced the working capital facilities to Rs. 70 Crores via a sanction letter dated 2012-02-03. A Supplement Agreement of Loan for Increase in overall limit was executed on 2012-02-15, with the Respondent continuing as Personal Guarantor. The Corporate Debtor failed to repay the outstanding debt. On 2017-12-15, the Applicant filed an Original Appeal against the Corporate

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## Issues and analysis

### Issue 1: Whether notice is required to be given to the Personal Guarantor before the appointment of an …

**Ratio:** The legislature has enacted various provisions which are unambiguous and do not leave any

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**Reasoning:** The Tribunal relied on the Supreme Court's judgment in Lalit Kumar Jain case, stating

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**Interpretation:** Section 95 of the IBC, along with related rules and judicial precedents, does

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**Application:** Given the facts and the interpretation of the law, the Tribunal concluded that

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** State Bank of…
- **Respondents:** M/s Prathyusha…; Ms.N.Amulya…
- **Advocates:** Sneha…

## Timeline

- **2011-03-24 — Agreement o…**: Applicant executed the 'Agreement of Loan for Overall Limit' with the Corporate Debtor,…
- **2012-02-03 — Enhancement of Working…**: The Applicant enhanced the working capital facilities and renewed the cash credit limit…

## 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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