# In the matter of State Bank of India Vs. Preeti Saxena, CP (IB)/746(PB)/2021

> NCLT judgment dated 2022-07-05. Citation: TCN-2022-NCLT-01884. The State Bank of India filed an application under Section 95 r/w Rule 7(2) of the Insolvency…

- **Court:** NCLT
- **Order date:** 5 Jul 2022
- **Citation:** TCN-2022-NCLT-01884
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-preeti-saxena-cp-4d65052e

## Summary

### Background

The State Bank of India filed an application under Section 95 r/w Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantor to Corporate Debtor) Rules, 2019, to initiate the Insolvency Resolution Process against the Respondent/Guarantor, Smt. Preeti Saxena, who stood as Personal Guarantor to the credit facilities availed by the Corporate Debtor, M/s Zillion Infraprojects Pvt. Ltd. The total outstanding debt was Rs. 90,73,78,607.30. The applicant/financial creditor first sanctioned financial assistance to the extent of Rs. 17 Crores vide Sanction Letter dated 23.08.2006 to the Corporate Debtor M/s Zillion Infraprojects Pvt. Ltd. This was reviewed/enhanced from time to time by executing loan

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## Facts

State Bank of India (SBI) sanctioned financial assistance to M/s Zillion Infraprojects Pvt. Ltd. (Corporate Debtor) to the extent of Rs. 17 Crores on 23.08.2006. This was reviewed and enhanced over time, with the last loan sanction being Rs. 100 crores on 15.03.2017. Smt. Preeti Saxena acted as the personal guarantor for the credit facilities availed by the Corporate Debtor. The Corporate Debtor defaulted, and the account was classified as NPA. SBI issued a demand notice on 14.06.2018 for Rs. 44.88 crores, but the amount remained unpaid. An application under Section 7 of the IB Code filed by L & T Finance Limited for CIRP against Zillion Infraprojects was admitted on 05.02.2019. SBI invoked the guarantee on 09.09.2021. Smt. Preeti Saxena responded on 28.09.2021,

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** The Hon'ble Supreme Court (in suo moto writ petition 3/2020) vide order dated 10.01.2022

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**Reasoning:** The Resolution Professional stated that the application filed by the Financial Creditor

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**Interpretation:** The Supreme Court's order excluding a specific period for limitation purposes

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**Application:** The court considered the Supreme Court's order and determined that the

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## Parties

- **Judges:** Ramalingam…; SH. AVINASH KUMAR…
- **Appellants:** State Bank of…
- **Respondents:** M/S ZILLION…; Preeti S…

## Timeline

- **2006-08-23 — Sanction…**: State Bank of India sanctioned financial assistance of Rs. 17 Crores to M/s Zillion…
- **2017-03-15 — Last Loan S…**: Last loan sanction of Rs. 100 crores to…

## 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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