# In the matter of State Bank of India vs. Rishi Kamlesh Agarwal

> NCLT judgment dated 2024-02-28. Citation: TCN-2024-NCLT-02327. The case involves an application filed by the State Bank of India under Section 95 of the…

- **Court:** NCLT
- **Order date:** 28 Feb 2024
- **Citation:** TCN-2024-NCLT-02327
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-rishi-kamlesh-agarwal-9d24ece7

## Summary

### Background

The case involves an application filed by the State Bank of India under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Insolvency Resolution Process against Rishi Kamlesh Agarwal, the personal guarantor to the corporate debtor, Vadraj Energy Limited. Vadraj Energy Limited was admitted into CIRP on 08.01.2020. The Resolution Professional (RP) was appointed, and a report was filed recommending the admission of the application. The application was filed due to the non-payment of dues by the corporate debtor, for which the personal guarantee was invoked. The proceedings were initially put on hold pending the Supreme Court's decision on the constitutional validity of Sections 94 to 100 of the IBC, which pertain to the insolvency of personal

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## Facts

State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Rishi Kamlesh Agarwal, who is the personal guarantor for Vadraj Energy Limited. Vadraj Energy Limited, the corporate debtor, was admitted into Corporate Insolvency Resolution Process (CIRP) on 08.01.2020. A Common Loan Agreement was executed on 28.06.2010 between Vadraj Energy Limited and several banks, including SBI. A Deed of Guarantee was executed on 31.12.2012 by Rishi Kamlesh Agarwal in favor of SBI. The corporate debtor acknowledged the debt through Balance Confirmation certificates, including one dated 19.06.2017. SBI issued a recall notice on 16.11.2017 and invoked the guarantee. The application under Section 95 was filed in 2021. The

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## Issues and analysis

### Issue 1: Whether the application under Section 95 …

**Ratio:** The limitation period for initiating insolvency proceedings is governed by the IBC and

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**Reasoning:** The court considered the Balance Confirmation certificates issued by the Corporate

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**Interpretation:** The Supreme Court's order in Suo Moto WP (Civil) No. 3 of 2022 extended the

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**Application:** The court found that the Balance Confirmation certificates and the Supreme

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** State Bank of…
- **Respondents:** Vadraj Energy…; Rishi Kamlesh…

## Timeline

- **2010-06-28 — Common Loan A…**: Common Loan Agreement dated 28.06.2010 was executed between the Corporate Debtor and…
- **2012-12-31 — Deed of Gua…**: Deed of Guarantee was executed on 31.12.2012 by the Respondent/Guarantor herein, in…

## 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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