# In the matter of State Bank of India Vs. Rekha Garg, CP (IB) No. 399(ND)/2022

> NCLT judgment dated 2022-06-10. Citation: TCN-2022-NCLT-02294. The State Bank of India filed an application under Section 95 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 Jun 2022
- **Citation:** TCN-2022-NCLT-02294
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-rekha-garg-cp-5437506b

## Summary

### Background

The State Bank of India filed an application under Section 95 of the Insolvency & Bankruptcy Code, 2016, seeking the initiation of the Insolvency Resolution Process against Ms. Rekha Garg, the Personal Guarantor of M/s Alupan Composite Panels Pvt. Ltd. A limited notice was issued to the Respondent/Personal Guarantor on 2022-05-12.

## Facts

State Bank of India filed an application under Section 95 of the Insolvency & Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Ms. Rekha Garg, who is the personal guarantor for M/s Alupan Composite Panels Pvt. Ltd. A limited notice was issued to Ms. Garg on 2022-05-12. Upon filing the application, an interim-moratorium commenced, as stipulated under Section 96(1)(a) of the IBC, which stays any pending legal action or proceedings against the personal guarantor concerning any debt. The IBBI informed the court about the use of online databases for sections 97(2) and 98(6) of the IBC. Mr. Vivek Parti was appointed as the Resolution Professional under Section 97(3) of the Code.

## Issues and analysis

### Issue 1: Whether the application filed under Section 95 of the Insolvency & Bankruptcy Code, 2016, for …

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

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**Reasoning:** The court considered the application filed by State Bank of India under Section 95 of the

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**Interpretation:** Section 95 provides a mechanism for creditors to pursue insolvency proceedings

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**Application:** The court accepted the application as maintainable under Section 95, allowing

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; HEMANT KUMAR…
- **Appellants:** State Bank of…
- **Respondents:** M/s Alupan…; Rekha…
- **Advocates:** Ankur M…; Meera M…; +2 more

## Timeline

- **2022-05-12 — Limited Notic…**: Limited Notice was issued to the Respondent/Personal Guarantor vide order dated…
- **2022-06-03 — IBBI Let…**: IBBI vide letter dt. 3rd June 2022 informed that for the section 97(2) and 98(6) of the…

## 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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