# In the matter of State Bank of India Vs. Ramesh Kumar Agarwal

> NCLT judgment dated 2022-02-11. Citation: TCN-2022-NCLT-04174. The case involves a petition filed by State Bank of India (SBI) under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 11 Feb 2022
- **Citation:** TCN-2022-NCLT-04174
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-ramesh-kumar-agarwal-7947350e

## Summary

### Background

The case involves a petition filed by State Bank of India (SBI) under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, against Ramesh Kumar Agarwal, a personal guarantor to M/s. Rythem Overseas Trade Limited (ROTL). ROTL had received various credit facilities from SBI, but defaulted on repayments, leading to SBI classifying the account as a non-performing asset (NPA). ROTL was admitted into CIRP and is now under liquidation. SBI seeks to initiate insolvency resolution process against the personal guarantor, Ramesh Kumar Agarwal, due to the default by ROTL.

## Facts

State Bank of India (SBI) extended various credit facilities to M/s. Rythem Overseas Trade Limited (ROTL). Ramesh Kumar Agarwal acted as a personal guarantor for these facilities. ROTL defaulted on its repayment obligations, leading SBI to classify the account as a Non-Performing Asset (NPA) on 15.12.2013. SBI issued a statutory demand notice under Section 13(2) and a possession notice under Section 13(4) of the SARFAESI Act. ROTL was admitted into Corporate Insolvency Resolution Process (CIRP) and is now under liquidation as of 18.02.2022. SBI filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, against Ramesh Kumar Agarwal, seeking to initiate insolvency resolution process against him as the personal guarantor. The personal

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## Issues and analysis

### Issue 1: Whether the petition filed by State Bank of India under Section 95(1) of the Insolvency and …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016, allows a creditor to initiate

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**Reasoning:** The court considered the petition filed by SBI under Section 95(1) of the IBC,

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**Interpretation:** Section 95(1) of the IBC provides a mechanism for creditors to pursue

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**Application:** The court applied Section 95(1) to the facts of the case, where Ramesh Kumar

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** State Bank of…
- **Respondents:** Rythem Overseas…; Ramesh Kumar…

## Timeline

- **2013-12-15 — Account Classified as…**: State Bank of India classified the account…
- **2014-06-19 — Demand Notice…**: SBI issued a statutory demand notice…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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