# In the matter of State Bank of India vs. S. Ravindranathan

> NCLT judgment dated 2025-03-05. Citation: TCN-2025-NCLT-00395. The State Bank of India (SBI), as a Financial Creditor, initiated an insolvency resolution…

- **Court:** NCLT
- **Order date:** 5 Mar 2025
- **Citation:** TCN-2025-NCLT-00395
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-s-ravindranathan-33b410ce

## Summary

### Background

The State Bank of India (SBI), as a Financial Creditor, initiated an insolvency resolution process against Mr. S. Ravindranathan, the Personal Guarantor of MPL Cars Private Limited (Corporate Debtor). The Corporate Debtor had availed cash credit loan facilities from SBI, and Mr. Ravindranathan had provided a personal guarantee for these facilities. The Corporate Debtor defaulted on its payments, leading to its admission into CIRP on 13.08.2019 and subsequent dissolution on 12.07.2024. SBI filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the insolvency resolution process against the Personal Guarantor.

## Facts

State Bank of India (SBI) extended cash credit loan facilities to MPL Cars Private Limited, the Corporate Debtor, under an Electronic Dealer Finance Scheme (e-DFS). Mr. S. Ravindranathan provided a personal guarantee for these facilities. The Corporate Debtor defaulted on its payments, with the date of default specified as 06.03.2019. SBI initiated SARFAESI proceedings against the mortgaged security interest belonging to Mr. S Ashok, another guarantor, and recovered a sum of Rs.3,57,00,000/- through auction. SBI issued a demand notice to the guarantors on 10.03.2020. The Corporate Debtor was admitted into CIRP on 13.08.2019 and subsequently ordered into dissolution on 12.07.2024. The total outstanding debt as of 05.02.2024 was Rs.48,97,59,953/-. The Personal Guarantor

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## Issues and analysis

### Issue 1: Whether the application for initiating the Insolvency Resolution Process against the Personal …

**Ratio:** Section 95(1) of the IBC, 2016 allows a creditor to file an application for initiating

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**Reasoning:** The Tribunal observed that the Financial Creditor had filed the application under Section

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover their dues from

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**Application:** In this case, the Financial Creditor had filed the application under Section

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** Bhask…
- **Respondents:** MPL Cars Private…; S. Ravindra…

## Timeline

- **2012-01-25 — e-DFS Sanctio…**: SBI sanctioned e-DFS loan…
- **2019-03-06 — Date of D…**: Specified date of default…

## 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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