# 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-02551. The State Bank of India filed a petition against N. Amulya Krishna, the personal guarantor of…

- **Court:** NCLT
- **Order date:** 30 May 2022
- **Citation:** TCN-2022-NCLT-02551
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-n-amulya-krishna-cp-12aae4f1

## Summary

### Background

The State Bank of India filed a petition against N. Amulya Krishna, the personal guarantor of Prathyusha Resources & Infra Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The application was filed under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The corporate debtor had availed working capital facilities from the applicant, with the respondent acting as a personal guarantor. Despite reminders, the corporate debtor failed to repay the outstanding debt. The applicant had previously filed an Original Appeal against the corporate debtor before the Debt Recovery Tribunal, which is still pending. An OTS (One Time Settlement) was sanctioned but failed to materialize.

## Facts

State Bank of India (SBI) filed a petition under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Ms. N. Amulya Krishna, who is the personal guarantor for Prathyusha Resources & Infra Private Limited. Prathyusha Resources & Infra Private Limited had availed working capital facilities from SBI. Ms. Krishna stood as a personal guarantor and executed a Deed of Guarantee on 2011-03-24. SBI enhanced the working capital facilities and renewed the cash credit limit to Rs.70 Crores on 2012-02-03. A Supplement Agreement of Loan for Increase in overall limit was executed on 2012-02-15. The corporate debtor failed to repay the outstanding debt despite reminders. SBI filed an Original Appeal against the Corporate Debtor before the Debt Recovery

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## Issues and analysis

### Issue 1: Whether the application under Section 95 of …

**Ratio:** Section 95 of IBC, 2016 allows a creditor to file an application for initiating the

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**Reasoning:** The Tribunal considered the facts presented and found that the application met the

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**Interpretation:** Section 95 provides a mechanism for creditors to pursue insolvency proceedings

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**Application:** The Tribunal found the application to be complete based on the facts presented

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## Parties

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

## Timeline

- **2011-03-24 — Deed of Guarantee…**: The Respondent, Ms. N. Amulya Krishna, executed a Deed of Guarantee in favor of the…
- **2012-02-03 — Cash Credit Limit…**: State Bank of India enhanced the working capital facilities and renewed the cash credit…

## 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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