# In the matter of State Bank of India Vs. S Nazar & Anr., IA(IBC)/13/KOB/2023 In CP(IB)/05/KOB/2022

> NCLT judgment dated 2023-05-03. Citation: TCN-2023-NCLT-03480. The case involves applications arising from the Insolvency Resolution Process of Personal…

- **Court:** NCLT
- **Order date:** 3 May 2023
- **Citation:** TCN-2023-NCLT-03480
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-s-nazar-anr-ia-a235b484

## Summary

### Background

The case involves applications arising from the Insolvency Resolution Process of Personal Guarantors (Mr. S Nazar and Ms. Raheena) of Nasco Trading India Pvt Ltd, the Corporate Debtor. The State Bank of India initiated the insolvency resolution process against the personal guarantors under section 95. The resolution professional, Mr. Padmakumar K. C., filed applications seeking an order under section 114 to reject the repayment plan, which was rejected by the creditors under section 112 of the IBC. The applications were admitted on 2022-03-11.

## Facts

The State Bank of India initiated insolvency resolution process against Mr. S Nazar and Ms. Raheena, who are personal guarantors to Nasco Trading India Pvt Ltd. A public announcement was made on 2022-07-02, inviting claims from creditors by 2022-07-23. The personal guarantors submitted a repayment plan under section 105, and the resolution professional submitted a report on the plan under section 106 on 2022-08-10. A meeting of creditors on 2022-10-13 rejected the repayment plan. The Tribunal recorded the meeting report on 2022-11-10. The personal guarantor was allowed to improve the plan, but the sole creditor (SBI) rejected the revised plan on 2022-12-06, as it involved a 90% write-off against a total admitted claim of Rs. 52,01,93,066. The Tribunal directed notice

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should approve or reject the repayment plan submitted by the …

**Ratio:** Section 114(1) of the IBC states that the Adjudicating Authority shall, by an order,

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**Reasoning:** The Tribunal perused the report of the resolution professional under section 112, noting

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**Interpretation:** Section 114(1) mandates the Adjudicating Authority to base its decision on the

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**Application:** In this case, the repayment plan was rejected by the sole creditor (SBI) due to

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Padmakuma…
- **Respondents:** Nasco Trading…; S Na…
- **Advocates:** Sankar Pa…; Vinod…

## Timeline

- **2022-03-11 — Applications…**: Applications were admitted by the…
- **2022-07-02 — Public Annou…**: A public announcement was made in Business Line and Mathrubhumi newspapers intimating the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 112 — Report of meeting of creditors on repayment plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-112)

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