# In the matter of State Bank of India vs. Sanjay Kumar Agarwal

> NCLT judgment dated 2023-11-20. Citation: TCN-2023-NCLT-00712. The Resolution Professional (RP) filed an application seeking leave to proceed against the…

- **Court:** NCLT
- **Order date:** 20 Nov 2023
- **Citation:** TCN-2023-NCLT-00712
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-sanjay-kumar-agarwal-1d00e1d3

## Summary

### Background

The Resolution Professional (RP) filed an application seeking leave to proceed against the personal guarantor under Section 121 of the Insolvency and Bankruptcy Code (IBC). The basis for the application is that the personal guarantor has not proposed a repayment plan despite having sufficient opportunity to do so.

## Facts

The Resolution Professional (RP) filed an application to proceed against the personal guarantor under Section 121 of the IB Code. The personal guarantor did not propose a repayment plan despite having sufficient opportunity. The RP submitted that the personal guarantor had no objection to initiating proceedings under Section 121 of the IB Code, as per the minutes of the CoC. The court noted that no repayment plan was submitted by the RP despite the opportunity.

## Issues and analysis

### Issue 1: Whether the Resolution Professional should be granted leave to proceed against the personal …

**Ratio:** Section 121 of the IB Code allows for proceedings against a personal guarantor when

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**Reasoning:** The court reasoned that since the personal guarantor had not submitted a repayment plan

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**Interpretation:** Section 121 of the IB Code is interpreted to allow proceedings against a

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**Application:** The court applied the ratio to the facts by noting that the personal guarantor

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## Parties

- **Judges:** Venkata Ramakrishn…; Sanjay…
- **Appellants:** State Bank of…
- **Respondents:** Sanjay Kumar…
- **Advocates:** Mummaneni Vazra…

## Timeline

- **2023-11-20 — Hearing…**: Attendance cum order sheet of…
- **2023-01-01 — IA (IBC) 1765/2023…**: Filing of IA (IBC) 1765/2023…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 121 — Application for bankruptcy](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-121)

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