# In the matter of State Bank of India Vs. Sameer Ahmad Khan, CP (IB) No.948(PB)/2020

> NCLT judgment dated 2022-04-06. Citation: TCN-2022-NCLT-03349. The case involves an application filed by State Bank of India under Section 95 read with Rule…

- **Court:** NCLT
- **Order date:** 6 Apr 2022
- **Citation:** TCN-2022-NCLT-03349
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-sameer-ahmad-khan-cp-1865b365

## Summary

### Background

The case involves an application filed by State Bank of India under Section 95 read with Rule 7(2) of the IBC, seeking to initiate the Insolvency Resolution Process against Mr. Sameer Ahmad Khan, a personal guarantor to the loan facility availed by M/s. Multiwal Pulp and Board Mills Private Limited. The corporate debtor's resolution plan has already been approved by the CoC. The applicant contends that the corporate debtor failed to adhere to financial discipline, leading to SBI issuing a legal demand notice on 07.08.2015. Despite this, the outstanding amount remained unpaid. SBI subsequently filed an Original Application before the Debts Recovery Tribunal, which is still pending.

## Facts

State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) against Sameer Ahmad Khan, who is a personal guarantor for the loan availed by M/s. Multiwal Pulp & Board Mills Private Limited. The corporate debtor, M/s. Multiwal Pulp & Board Mills Private Limited, had its resolution plan already approved by the Committee of Creditors (CoC). SBI issued a legal demand notice to the corporate debtor and guarantors on 07.08.2015, but the outstanding amount remained unpaid. SBI then filed an Original Application before the Debts Recovery Tribunal (DRT), which is still pending. In 2017, the corporate debtor and guarantor approached SBI for a settlement, which SBI accepted on 14.03.2017. However, the settlement failed

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## Issues and analysis

### Issue 1: Whether the application filed under Section 95 of the IBC for initiating the Insolvency Resolution …

**Ratio:** Section 95 of the IBC allows for the initiation of the Insolvency Resolution Process

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**Reasoning:** The court considered the report submitted by the Resolution Professional, which

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

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**Application:** The application was deemed maintainable because Mr. Sameer Ahmad Khan was a

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## Parties

- **Judges:** DHARMINDER…; AVINASH K.…
- **Appellants:** State Bank of…
- **Respondents:** M/s. Multiwal…; Sameer Ahma…

## Timeline

- **2015-08-07 — Legal Demand…**: SBI sent a Legal Demand Notice to Corporate Debtor and the Guarantors including Mr.…
- **2017-03-14 — Settlement Offer…**: SBI accepted the settlement offer from…

## 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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