# In the matter of State Bank of India Vs. Naresh Mittal, CP (IB)No. 352/(ND)/2021

> NCLT judgment dated 2022-08-17. Citation: TCN-2022-NCLT-01348. The case pertains to an application filed under Section 95 read with Section 99 of the…

- **Court:** NCLT
- **Order date:** 17 Aug 2022
- **Citation:** TCN-2022-NCLT-01348
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-naresh-mittal-cp-553054fb

## Summary

### Background

The case pertains to an application filed under Section 95 read with Section 99 of the Insolvency and Bankruptcy Code (IBC), 2016, bearing IA-3731/2021, which is a report filed by the Resolution Professional, Mr. Sunil Kumar Kabra. The application was originally filed by State Bank of India (SBI) under Section 95(1) of the IBC against Mr. Naresh Mittal, who is the personal guarantor for credit facilities availed by M/s. Hi Tech Grain Processing Pvt. Ltd. The corporate debtor had approached SBI Consortium for working capital requirements, aggregating to Rs. 180.00 Crores, vide a Working Capital Consortium Agreement dated 12.03.2015. The financial creditor served a demand notice dated 31.08.2020 to the personal guarantor demanding payment of the outstanding debt. The

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## Facts

State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Mr. Naresh Mittal, the personal guarantor to the credit facilities availed by M/s. Hi Tech Grain Processing Pvt. Ltd. (Corporate Debtor). The Corporate Debtor had approached SBI Consortium for working capital, aggregating to Rs. 180.00 Crores, vide a Working Capital Consortium Agreement dated 12.03.2015. The outstanding amount was Rs. 209,61,09,614 as on 31.08.2020. A Personal Guarantee agreement dated 06.06.2017 was executed by Mr. Naresh Mittal and Mrs. Asha Mittal in favor of SBI Consortium, guaranteeing a principal sum of Rs. 305 Crores. The Corporate Debtor defaulted on its repayment obligations, leading to the account being classified as

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## Issues and analysis

### Issue 1: Whether the amounts the financial creditors will recover either on the culmination of CIRP into …

**Ratio:** There is no provision in the Code which bars the initiation of Insolvency Resolution

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**Reasoning:** The Adjudicating Authority reasoned that the purpose of incorporating provisions related

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**Interpretation:** The interpretation is that the IBC allows for parallel proceedings against the

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**Application:** The principle that the crystallization of debt from the corporate debtor is not

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** State Bank of…
- **Respondents:** M/s HI Tech Grain…; NARESH M…
- **Advocates:** Ankur M…; Aishwarya…; +2 more

## Timeline

- **2015-03-12 — Working Capital…**: The Corporate Debtor approached SBI Consortium for working capital aggregating Rs. 180.00…
- **2017-06-06 — Personal Guarantee…**: Mr. Naresh Mittal and Mrs. Asha Mittal executed a Personal Guarantee agreement in favor…

## 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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