# In the matter of State Bank of India Vs. R V Tyagarajan, CP (IB) No. 275 (Che)/2021

> NCLT judgment dated 2022-02-18. Citation: TCN-2022-NCLT-04073. The case pertains to an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 18 Feb 2022
- **Citation:** TCN-2022-NCLT-04073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-r-v-tyagarajan-cp-07b4bc5c

## Summary

### Background

The case pertains to an application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Mr. R V Tyagarajan, the personal guarantor of M/s. Thiru Arooran Sugars Limited, a Corporate Debtor undergoing liquidation. An order for the liquidation of Thiru Arooran Sugars Limited was previously passed by the Adjudicating Authority on 08.04.2021 in IA/1186/IB/2020. The application was filed by State Bank of India, the Financial Creditor.

## Facts

State Bank of India, the Financial Creditor, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Mr. R V Tyagarajan, the personal guarantor of M/s. Thiru Arooran Sugars Limited. Thiru Arooran Sugars Limited, the Corporate Debtor, is already under liquidation, with a liquidation order passed on 08.04.2021. The date of default stated in the application is 05.12.2018. Agreements of Guarantee executed by the Personal Guarantor are placed on record. A Demand Notice was issued to the Personal Guarantor on 31.10.2020. The application seeks to initiate proceedings against the personal guarantor under Section 95(1) of the IBC, 2016.

## Issues and analysis

### Issue 1: Whether the application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, …

**Ratio:** The Hon'ble NCLAT has held that once an application under Section 95 of IBC, 2016 is

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**Reasoning:** The Adjudicating Authority relied on the NCLAT's judgment, which mandates that the

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**Interpretation:** Section 95 of the IBC, 2016, provides a mechanism for initiating insolvency

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**Application:** Given the NCLAT's ruling and the application filed by the Financial Creditor,

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** State Bank of…
- **Respondents:** Thiru Arooran…; R V TYAGA…
- **Advocates:** M.L. Ga…

## Timeline

- **2018-12-05 — Date of D…**: The date of default as…
- **2020-10-31 — Demand N…**: Demand Notice issued 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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