# In the matter of State Bank of India Vs. Shivratan Chandak, CP No IB 71 /95(JPR)/2021

> NCLT judgment dated 2022-05-31. Citation: TCN-2022-NCLT-02522. The State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 31 May 2022
- **Citation:** TCN-2022-NCLT-02522
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-shivratan-chandak-cp-no-ib-71-95-ae01988f

## Summary

### Background

The State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) seeking the initiation of the Interim Resolution Process against Shri Shivratan Chandak, the personal guarantor of the corporate debtor, M/s Maximum Synthetics Private Limited, for a default amount of Rs. 34,78,76,322. The Resolution Professional (RP), Ms. Reshma Mittal, was appointed to file a report under Section 99 of the IBC. The RP submitted a report recommending the admission of the application, stating that the personal guarantor had defaulted on repayment, the application was duly filed, and a demand notice was served but no payment was received. The personal guarantor was not traceable despite attempts, leading to a public notice being issued.

## Facts

State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC) to initiate the Interim Resolution Process (IRP) against Shri Shivratan Chandak, the personal guarantor of M/s Maximum Synthetics Private Limited. The default amount was Rs. 34,78,76,322. Ms. Reshma Mittal was appointed as the Resolution Professional (RP). The RP filed a report under Section 99 of the IBC, recommending the admission of the application. The RP's report stated that the personal guarantor defaulted on repayment, the application was duly filed in Form A with the requisite fee, and a demand notice was served under Section 95(4)(b) of the Code. The RP attempted to serve notices to the personal guarantor via postal service and email, but received no

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## Issues and analysis

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

**Ratio:** Section 95 of the IBC allows a creditor to file an application for initiating the Interim

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**Reasoning:** The court relied on the report submitted by the Resolution Professional, which indicated

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**Interpretation:** Section 95 of the IBC provides a mechanism for creditors to recover debts from

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**Application:** In this case, the court found that the State Bank of India had complied with

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## Parties

- **Judges:** Deep Chandr…; RAGHU N…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** M/s Maximum…; Shivratan C…

## Timeline

- **2021-12-23 — Appointment of…**: Ms. Reshma Mittal was appointed…
- **2022-01-08 — Intimation to Personal…**: The RP issued intimation to the Personal…

## 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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