# 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-03297. 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-03297
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-s-suthakar-cp-cbe214d5

## 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 Mr. S. Suthakar, the personal guarantor of M/s. Aqua Designs India Private Limited, the Corporate Debtor. CIRP was initiated against the Corporate Debtor on 2018-10-17, and subsequently, liquidation was ordered on 2019-12-23. The application was filed by the Financial Creditor, State Bank of India, due to a default that occurred on 2018-04-24. A demand notice was issued to the Personal Guarantor on 2021-05-28.

## Facts

State Bank of India filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 against Mr. S. Suthakar, who is the personal guarantor for M/s. Aqua Designs India Private Limited. Aqua Designs India Private Limited is the Corporate Debtor. Corporate Insolvency Resolution Process (CIRP) had been initiated against the Corporate Debtor on 2018-10-17, and subsequently, the Corporate Debtor was ordered for liquidation on 2019-12-23. The date of default was 2018-04-24. A demand notice was issued to the Personal Guarantor on 2021-05-28. The agreements of guarantee executed by the Personal Guarantor are placed between pages 44-62 of the typed set filed with the application. The application was filed to initiate proceedings against the Respondent (Mr.

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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:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016 allows a creditor to initiate

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**Reasoning:** The court considered the application filed under Section 95(1) of the IBC, 2016 and the

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

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**Application:** The application was filed by State Bank of India against Mr. S. Suthakar, the

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## Parties

- **Judges:** Ramalingam…; B. Anil…
- **Respondents:** Aqua Designs…; S. Suth…

## Timeline

- **2018-10-17 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was 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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