# In the matter of State Bank of India Vs. Rajya Lakshmi, CP (IB)/123/2022

> NCLT judgment dated 2022-04-20. Citation: TCN-2022-NCLT-03200. The case pertains to Company Petition IB/123/2022 filed under Section 95 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 20 Apr 2022
- **Citation:** TCN-2022-NCLT-03200
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-rajya-lakshmi-cp-5d5abc88

## Summary

### Background

The case pertains to Company Petition IB/123/2022 filed under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The petitioner, State Bank of India, initiated proceedings against the respondents, Mrs. Rajya Lakshmi & Chadalvada Infratech Ltd. The matter was heard by the National Company Law Tribunal (NCLT), Hyderabad Bench – 1.

## Facts

State Bank of India filed a Company Petition IB/123/2022 against Mrs. Rajya Lakshmi & Chadalvada Infratech Ltd. under Section 95 of the IBC, 2016. Following the filing of the application, an interim moratorium commenced as per Section 96(1)(a) of the I&B Code, 2016. This moratorium entails the stay of any legal action or proceeding pending in respect of any debt and prevents creditors from initiating any legal action or proceedings in respect of any debt during the interim period. Shri Maligi Madhusudhana Reddy was appointed as the IRP and is required to submit a report within 10 days. The petitioner's counsel is directed to notify the respondents. The case is adjourned to 13.05.2022.

## Issues and analysis

### Issue 1: Whether an interim moratorium should commence following the filing of an application under Section …

**Ratio:** Section 96(1)(a) of the I&B Code, 2016, stipulates that an interim moratorium

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**Reasoning:** The court reasoned that the interim moratorium is a statutory consequence of filing an

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**Interpretation:** Section 96(1)(a) is interpreted to mean that the interim moratorium is

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**Application:** In this case, the filing of the application by State Bank of India against Mrs.

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## Parties

- **Judges:** Venkata Ramakrishn…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** Chadalvada…; Rajya Lakshmi &…

## Timeline

- **2022-04-20 — Hearing…**: Hearing held on 20-04-2022 at 10:30…
- **2022-05-13 — Adjournmen…**: The matter stands…

## 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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