# In the matter of State Bank of India Vs. S Suthakar, CP (IB)/185(CHE)/2021

> NCLT judgment dated 2022-04-11. Citation: TCN-2022-NCLT-03282. The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Apr 2022
- **Citation:** TCN-2022-NCLT-03282
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-s-suthakar-cp-66e83363

## Summary

### Background

The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 by State Bank of India against the personal guarantor, Mr. S. Suthakar, of M/s. Aqua Designs India Private Limited. CIRP had been initiated against the Corporate Debtor, Aqua Designs India Private Limited, vide order dated 17.10.2018, and subsequently, the Corporate Debtor was ordered for liquidation vide order dated 23.12.2019. The application was filed by the Financial Creditor, State Bank of India, due to a default date of 24.04.2018. A demand notice was issued to the Personal Guarantor on 28.05.2021.

## Facts

State Bank of India filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 against Mr. S. Suthakar, the personal guarantor of M/s. Aqua Designs India Private Limited. Aqua Designs India Private Limited, the Corporate Debtor, had previously undergone Corporate Insolvency Resolution Process (CIRP) initiated on 17.10.2018 and was subsequently ordered for liquidation on 23.12.2019. The date of default stated in the application is 24.04.2018. The agreements of guarantee executed by the Personal Guarantor are placed between pages 44-62 of the filed documents. A demand notice was issued to the Personal Guarantor on 28.05.2021 under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 …

**Ratio:** The ratio is based on the interpretation of Section 95 of the IBC, 2016, which allows for

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**Reasoning:** The court considered the fact that the application was filed under Section 95(1) of the

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**Interpretation:** Section 95 of the IBC, 2016 provides a mechanism for creditors to initiate

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**Application:** The application was deemed maintainable as it was filed under the correct

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## Parties

- **Judges:** Ramalingam…; B. Anil…
- **Appellants:** State Bank of…
- **Respondents:** Aqua Designs…; S. Suth…

## Timeline

- **2018-10-17 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Aqua Designs India…
- **2019-12-23 — Liquidation…**: Aqua Designs India Private…

## 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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