# In the matter of State Bank of India vs. Ratneshwar Kumar Maheshwari

> NCLT judgment dated 2023-11-30. Citation: TCN-2023-NCLT-00501. The State Bank of India ('Creditor'/'Applicant') filed an application to initiate the…

- **Court:** NCLT
- **Order date:** 30 Nov 2023
- **Citation:** TCN-2023-NCLT-00501
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-ratneshwar-kumar-maheshwari-fc29e199

## Summary

### Background

The State Bank of India ('Creditor'/'Applicant') filed an application to initiate the Insolvency Resolution Process against Shri Ratneshwar Kumar Maheshwari ('Personal Guarantor'/'Respondent'). The application was filed through Shri Satyendra P. Khorania, the Insolvency Resolution Professional ('IRP'), under Section 95 of the Insolvency and Bankruptcy Code, 2016 ('IBC'/'Code') read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. The Personal Guarantor had provided a guarantee for loans availed by M/s Suzuki Textiles Ltd ('Corporate Debtor').

## Facts

State Bank of India filed an application to initiate the Insolvency Resolution Process against Shri Ratneshwar Kumar Maheshwari, who acted as a personal guarantor for loans availed by M/s Suzuki Textiles Ltd. The Corporate Debtor defaulted on its repayment obligations, leading to the invocation of the personal guarantee. The account of the Corporate Debtor was declared as NPA on 02.06.2017. The Creditor issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 30.07.2019, calling upon the Corporate Debtor and the Guarantors to repay the outstanding amount. A legal notice was served on 28.11.2019 for Rs. 62.18 Crores. The Creditor also filed an Original Application 517/2020 before the Debt Recovery Tribunal, Jaipur. The Corporate Debtor also faced insolvency

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## Issues and analysis

### Issue 1: Whether the application to initiate the Insolvency Resolution Process against the Personal …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016 allows a creditor to file an

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**Reasoning:** The court observed that the Personal Guarantor had defaulted in payment of the dues

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**Interpretation:** Section 95 provides a mechanism for creditors to recover debts from personal

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**Application:** The court applied Section 95 to the facts of the case, noting that the Personal

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** State Bank of…
- **Respondents:** M/s Suzuki…; Ratneshwar Kumar…

## Timeline

- **2017-06-02 — Account decla…**: The account of the Corporate Debtor was…
- **2019-07-30 — Notice under SARFAESI…**: The Creditor issued a notice under Section 13(2) of the SARFAESI Act, 2002, calling upon…

## 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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