# In the matter of State Bank of India Vs. P K Balasubramanian, CP (IB)/5/CHE/2022

> NCLT judgment dated 2022-06-07. Citation: TCN-2022-NCLT-02343. The case pertains to an application filed by State Bank of India (SBI), the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 7 Jun 2022
- **Citation:** TCN-2022-NCLT-02343
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-p-k-balasubramanian-cp-38aaba00

## Summary

### Background

The case pertains to an application filed by State Bank of India (SBI), the Financial Creditor, under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, against Mr. P.K. Balasubramanian, the Personal Guarantor of Tebma Shipyards Limited, the Corporate Debtor. An order for commencement of CIRP against Tebma Shipyards Limited was passed on 25.09.2018, and the resolution plan was approved on 04.03.2020. The application was filed based on a default date of 05.11.2018. The Personal Guarantor had executed a Deed of Guarantee on 08.09.2009. A demand notice was issued to the Personal Guarantor on 17.12.2021.

## Facts

State Bank of India (SBI), acting as the Financial Creditor, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, against Mr. P.K. Balasubramanian, who is the Personal Guarantor for Tebma Shipyards Limited, the Corporate Debtor. The Corporate Debtor had previously undergone Corporate Insolvency Resolution Process (CIRP), with the CIRP commencing on 25.09.2018 and the resolution plan being approved on 04.03.2020. The date of default, as per the application, is 05.11.2018. A Deed of Guarantee was executed by the Personal Guarantor on 08.09.2009. A Demand Notice was issued to the Personal Guarantor on 17.12.2021. The Respondent filed a counter to the application on 27.04.2022, and the Applicant filed a Reply Statement on 07.06.2022.

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95(1) of the IBC, 2016, by the Financial Creditor …

**Ratio:** The Adjudicating Authority has to act on the application filed under Section 95 of IBC,

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**Reasoning:** The court relied on the decision of the Hon'ble NCLAT in the matter of Mr. Ravi Ajit

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**Interpretation:** Section 95 of the IBC, 2016, allows a financial creditor to initiate insolvency

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**Application:** The court applied the ratio by directing the Financial Creditor to serve a copy

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## Parties

- **Judges:** Ramalingam…; Shri. Samee…
- **Appellants:** State Bank of…
- **Respondents:** Tebma Shipyard…; P.K Balasubramania…

## Timeline

- **2018-09-25 — Commencement…**: An order was passed for commencement of…
- **2020-03-04 — Approval of Resolution…**: The Resolution plan for Tebma Shipyards…

## 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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