# 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-03177. 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-03177
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-rajya-lakshmi-cp-f6ae204e

## 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 is State Bank of India, and the respondents are Mrs. Rajya Lakshmi & Chadalvada Infratech Ltd. The matter concerns the commencement of an interim moratorium following the filing of an application under Section 96(1)(a) of the IBC, 2016.

## Facts

State Bank of India filed a Company Petition IB/123/2022 under Section 95 of the IBC, 2016 against Mrs. Rajya Lakshmi & Chadalvada Infratech Ltd. The court considered the application and noted that an interim moratorium commences from the date of filing the application under Section 96(1)(a) of the I&B Code, 2016. The order references Section 96(1)(b) of the I&B Code, 2016, which details the effects of the interim moratorium, specifically staying legal actions and preventing initiation of new actions by creditors. Shri Maligi Madhusudhana Reddy is appointed as 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 be imposed following the filing of an application under …

**Ratio:** Section 96 of the I&B Code, 2016, stipulates that an interim moratorium commences

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**Reasoning:** The court, recognizing the provisions of Section 96, acknowledges the commencement of the

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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, upon the filing of the application by State Bank of India, the

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **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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