# In the matter of State Bank of India Vs. Satya Prakash Pandey, CP (IB)/394(KB)/2021

> NCLT judgment dated 2022-07-15. Citation: TCN-2022-NCLT-01694. The case originates from an application under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 15 Jul 2022
- **Citation:** TCN-2022-NCLT-01694
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-satya-prakash-pandey-cp-5ef1d78b

## Summary

### Background

The case originates from an application 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 Debtor) Rules, 2019. State Bank of India filed the application against Satya Prakash Pandey.

## Facts

State Bank of India filed an application against Satya Prakash Pandey under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the relevant rules for personal guarantors to corporate debtors. The matter was reserved for orders on 2022-06-22. The Hon'ble Supreme Court passed an order on 2022-07-08 in Writ Petition (Civil) No. 478/2022 (Gaurav Garg -vs- Union of India & Ors.) with W.P.(C) No. 485/2022 and W.P.(C) No. 486/2022, addressing similar issues related to the validity of Sections 95(1), 96(1), 97(5), 99(1), 99(2), 99(4), 99(5), 99(6) and 100 of the Insolvency and Bankruptcy Code, 2016. The Supreme Court directed that petitioners in those writ petitions should not transfer, alienate, encumber, or dispose of their assets. The NCLT

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## Issues and analysis

### Issue 1: Whether the validity of Sections 95(1), 96(1), 97(5), 99(1), 99(2), 99(4), 99(5), 99(6) and 100 of …

**Ratio:** The principle is that when the validity of a law is under challenge before a higher

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**Reasoning:** The court reasoned that since the Supreme Court is already examining the validity of the

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**Interpretation:** This involves interpreting the principle of judicial hierarchy and the need for

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

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## Parties

- **Judges:** Rohit K…; Harish Chander…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** Satya Prakash…

## Timeline

- **2021-01-01 — Case Fil…**: C.P.(IB)/394(KB)2021 filed under Section 95(1) of the Insolvency and Bankruptcy Code,…
- **2022-06-22 — Order Res…**: The matter was reserved…

## 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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