# In the matter of State Bank of India vs. Neelvarna Rupnar

> NCLT judgment dated 2024-10-29. Citation: TCN-2024-NCLT-00331. The State Bank of India filed a petition under Section 121 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 29 Oct 2024
- **Citation:** TCN-2024-NCLT-00331
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-neelvarna-rupnar-b165bde4

## Summary

### Background

The State Bank of India filed a petition under Section 121 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019, seeking to initiate bankruptcy proceedings against Smt. Neelvarna Rupnar, the personal guarantor of Fabtech Projects and Engineers Ltd. The corporate debtor's CIRP was initiated earlier, and the personal guarantor's repayment plan was rejected by the Committee of Creditors (CoC).

## Facts

State Bank of India (SBI) sanctioned a term loan to Fabtech Projects and Engineers Ltd., the Corporate Debtor. Smt. Neelvarna Rupnar provided a personal guarantee to secure the loan. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 24.09.2019. SBI issued a demand notice on 24.06.2020 to the Personal Guarantor for Rs. 306,93,94,623.79. Upon default, SBI filed a Company Petition No. 1734 of 2020 under Section 95 of the Code. Mr. Manoj Kuma Mishra was appointed as the Resolution Professional on 22.02.2021. The Personal Guarantor submitted a Repayment Plan on 23.11.2021, which was disapproved by the Committee of Creditors (CoC) with 97.99% voting. The Adjudicating Authority closed the insolvency resolution process of the

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## Issues and analysis

### Issue 1: Whether the petition filed by the Financial Creditor under Section 121 of the Insolvency and …

**Ratio:** Section 121 of the Insolvency and Bankruptcy Code, 2016, allows a creditor to apply for

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**Reasoning:** The Adjudicating Authority observed that the petition was filed in the prescribed form,

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**Interpretation:** Section 121 provides a mechanism for creditors to recover debts from personal

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**Application:** The Financial Creditor, SBI, filed the petition after the Personal Guarantor

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** State Bank of…
- **Respondents:** Fabtech Projects…; Neelvarna…

## Timeline

- **2019-09-24 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Fabtech Projects and…
- **2020-06-24 — Demand N…**: State Bank of India issued a demand notice to Smt. Neelvarna Rupnar for Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 121 — Application for bankruptcy](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-121)

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