# In the matter of State Bank of India Vs. P V Prabhakar Rao, CP (IB) 29/95/AMR/2022

> NCLT judgment dated 2022-08-04. Citation: TCN-2022-NCLT-01471. State Bank of India filed a petition against P.V. Prabhakar Rao, the personal guarantor of…

- **Court:** NCLT
- **Order date:** 4 Aug 2022
- **Citation:** TCN-2022-NCLT-01471
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-p-v-prabhakar-rao-cp-6fc8f8a3

## Summary

### Background

State Bank of India filed a petition against P.V. Prabhakar Rao, the personal guarantor of Pratuysha Resources & Infra Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP) under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The corporate debtor had availed working capital facilities from the petitioner/financial creditor, with an initial agreement for Rs. 50 Crores, later enhanced to Rs. 70 Crores. The respondent stood as a personal guarantor, executing a supplement deed of guarantee. Despite reminders, the corporate debtor failed to repay the outstanding debt. The financial creditor had previously filed an Original Appeal against the corporate debtor before the Debt Recovery Tribunal, which is pending. An OTS was

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## Facts

State Bank of India (SBI) filed a petition under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Mr. P.V. Prabhakar Rao, who is the personal guarantor for Pratuysha Resources & Infra Private Limited. The corporate debtor, Pratuysha Resources & Infra Private Limited, availed working capital facilities from SBI. An 'Agreement of Loan for Overall Limit' was executed on 2011-03-24, granting Rs. 50 Crores, which was later enhanced to Rs. 70 Crores on 2012-02-03. Mr. P.V. Prabhakar Rao acted as the personal guarantor and executed a Supplement Deed of Guarantee on 2012-02-15. The corporate debtor defaulted on repayments. SBI filed an Original Appeal before the Debt Recovery Tribunal, which is still pending. An OTS was sanctioned for Rs.

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## Issues and analysis

### Issue 1: Whether the application under Section 95 of the Insolvency and Bankruptcy Code, 2016, is complete …

**Ratio:** Section 95 of the IBC, along with related rules, outlines the requirements for filing an

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

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**Interpretation:** The interpretation of Section 95 involves assessing whether the application

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**Application:** The Tribunal applied the provisions of Section 95 to the facts of the case,

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** State Bank of…
- **Respondents:** Pratuysha…; Mr.P.V.Prabhakar…

## Timeline

- **2011-03-24 — Agreement o…**: Agreement of Loan for Overall Limit…
- **2012-02-03 — Enhanced Cred…**: Cash credit limit…

## 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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