# 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-02348. The case involves an application filed by State Bank of India (SBI), the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 7 Jun 2022
- **Citation:** TCN-2022-NCLT-02348
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-p-k-balasubramanian-cp-fd2dcf6e

## Summary

### Background

The case involves 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 P.K. Balasubramanian, the Personal Guarantor of Tebma Shipyards Limited, the Corporate Debtor. An order for commencement of CIRP for Tebma Shipyards Limited was passed on 25.09.2018, and the resolution plan was approved on 04.03.2020. The application is based on a default date of 05.11.2018. The Personal Guarantor 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), which commenced on 25.09.2018, and the resolution plan was approved on 04.03.2020. The date of default, as per the application, is 05.11.2018. Mr. Balasubramanian had executed a Deed of Guarantee on 08.09.2009. SBI issued a demand notice to Mr. Balasubramanian on 17.12.2021, as per Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal

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## Issues and analysis

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

**Ratio:** Section 95(1) of the IBC, 2016 allows a creditor to initiate insolvency resolution

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**Reasoning:** The court considered the application filed by SBI under Section 95(1) of the IBC, 2016,

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

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**Application:** The court acknowledged the application filed by SBI under Section 95(1) and

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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 the commencement of Corporate Insolvency Resolution Process…
- **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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