# In the matter of State Bank of India vs. Shri Ratneshwari Kumar Maheshwari

> NCLT judgment dated 2023-11-30. Citation: TCN-2023-NCLT-00496. State Bank of India filed an application to initiate the Insolvency Resolution Process against…

- **Court:** NCLT
- **Order date:** 30 Nov 2023
- **Citation:** TCN-2023-NCLT-00496
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-shri-ratneshwari-kumar-maheshwari-d52b8cef

## Summary

### Background

State Bank of India filed an application to initiate the Insolvency Resolution Process against Shri Ratneshwar Kumar Maheshwari, the Personal Guarantor, under Section 95 of the Insolvency and Bankruptcy Code, 2016. The application was filed due to the default in repayment of loans availed by M/s Suzuki Textiles Ltd, for which Shri Ratneshwar Kumar Maheshwari stood as a guarantor. The Corporate Debtor's account was declared NPA on 02.06.2017, and a notice under Section 13(2) of the SARFAESI Act, 2002 was issued on 30.07.2019. The Corporate Debtor had also faced an application under Section 9 of the Code by M/s Sangam (India) Ltd., which was admitted on 31.01.2022. The Creditor, SBI, filed its claim before the Resolution Professional, and a resolution plan submitted by

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## Facts

State Bank of India (SBI) filed an application against Shri Ratneshwar Kumar Maheshwari, the Personal Guarantor, to initiate the Insolvency Resolution Process under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. Shri Maheshwari stood as a guarantor for loans availed by M/s Suzuki Textiles Ltd ('Corporate Debtor'). The Corporate Debtor defaulted on its repayment obligations, leading to its account being declared a Non-Performing Asset (NPA) on June 2, 2017. SBI issued a notice under Section 13(2) of the SARFAESI Act, 2002, on July 30, 2019, to the Corporate Debtor and the guarantors, demanding repayment of outstanding credit facilities amounting to Rs. 62.18 Crores. A legal notice was served on November 28, 2019, demanding disbursement of the debt. An

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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 Insolvency and Bankruptcy Code, 2016, allows a creditor to initiate

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**Reasoning:** The court observed that the Corporate Debtor defaulted in its repayment obligations,

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**Interpretation:** Section 95 provides a mechanism for creditors to recover their dues from

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**Application:** In this case, Shri Ratneshwar Kumar Maheshwari stood as a personal guarantor

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** State Bank of…
- **Respondents:** M/s Suzuki…; Ratneshwar Kumar…

## Timeline

- **2017-06-02 — Corporate Debtor…**: The account of the Corporate Debtor, M/s Suzuki Textiles Ltd, was declared as a…
- **2019-07-30 — Notice under Section…**: State Bank of India issued a notice under Section 13(2) of the SARFAESI Act, 2002, to the…

## 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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