# In the matter of State Bank of India Vs. Satheesh Babu V K, CP (IBC)/17/KOB/2022

> NCLT judgment dated 2022-03-21. Citation: TCN-2022-NCLT-03642. The case involves multiple petitions (CP(IBC)/15/KOB/2022, CP(IBC)/16/KOB/2022,…

- **Court:** NCLT
- **Order date:** 21 Mar 2022
- **Citation:** TCN-2022-NCLT-03642
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-satheesh-babu-v-k-cp-a350429a

## Summary

### Background

The case involves multiple petitions (CP(IBC)/15/KOB/2022, CP(IBC)/16/KOB/2022, CP(IBC)/17/KOB/2022, CP(IBC)/18/KOB/2022, CP(IBC)/19/KOB/2022) filed by State Bank of India under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, against the personal guarantors of the Corporate Debtor, M/s. Propyl Packaging Limited. The Corporate Insolvency Resolution Process (CIRP) had already been initiated against the Corporate Debtor, followed by a liquidation order due to the absence of a resolution plan.

## Facts

State Bank of India (SBI) filed petitions under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, against Mr. Rajesh K S, Mr. Satheesh Babu V. K, Mr. Saleesh K Satheesh, Mrs. Bindya Saleesh, and Mrs. Sindhu Rajesh, who are the personal guarantors of the Corporate Debtor, M/s. Propyl Packaging Limited. The Corporate Debtor had previously undergone Corporate Insolvency Resolution Process (CIRP), which resulted in a liquidation order due to the absence of a viable resolution plan. SBI had initially sanctioned an overdraft facility of Rs 7.05 Crore and an International Letter of Credit Facility of Rs.4.70 Crore to the Corporate Debtor, secured by a mortgage of properties. Subsequently, the credit facilities were enhanced to 16.80 Crore. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the petitions filed by State Bank of India under Section 95 of the Insolvency and …

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

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**Reasoning:** The Tribunal considered that the Petitioners/Creditors have complied with Section 95(4)

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

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** Ashok Kumar…; Anil Ku…
- **Appellants:** State Bank of…
- **Respondents:** M/s Propyl…; Mr.Rajes…
- **Advocates:** Shri. Vin…; Reeth…

## Timeline

- **2014-11-28 — Initial Overdraft…**: SBI sanctioned an overdraft facility of Rs 7.05 Crore and an International Letter of…
- **2014-12-05 — Loan Cum Hypothecation…**: Corporate Debtor executed loan cum…

## 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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