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

> NCLT judgment dated 2023-11-30. Citation: TCN-2023-NCLT-00505. The State Bank of India ('Creditor'/'Applicant') filed an application to initiate the…

- **Court:** NCLT
- **Order date:** 30 Nov 2023
- **Citation:** TCN-2023-NCLT-00505
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-shri-ratneshwari-kumar-maheshwari-e1fd0076

## Summary

### Background

The State Bank of India ('Creditor'/'Applicant') filed an application to initiate the Insolvency Resolution Process against Shri Ratneshwar Kumar Maheshwari ('Personal Guarantor'/'Respondent'). The application was filed through Shri Satyendra P. Khorania, the Insolvency Resolution Professional ('IRP'), under Section 95 of the Insolvency and Bankruptcy Code, 2016 ('IBC'/'Code') 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. The Personal Guarantor had provided a guarantee for loans availed by M/s Suzuki Textiles Ltd ('Corporate Debtor').

## Facts

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 IBC. Shri Ratneshwar Kumar Maheshwari had provided a personal guarantee for loans availed by M/s Suzuki Textiles Ltd, the Corporate Debtor. The Corporate Debtor's account was declared NPA on 02.06.2017. The Creditor issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 30.07.2019, calling upon the Corporate Debtor and the Guarantors to repay the outstanding amount. The Corporate Debtor and its guarantors failed to repay the demand amount of Rs. 62.18 Crores. A legal notice was served on 28.11.2019. The Creditor also preferred an Original Application 517/2020 against the Corporate

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## Issues and analysis

### Issue 1: Whether the application to initiate the Insolvency Resolution Process against the Personal …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the

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**Reasoning:** The court observed that the Personal Guarantor had defaulted in payment of dues within

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**Interpretation:** The court interpreted Section 95 of the IBC and Rule 7(2) of the relevant rules

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**Application:** The court applied the provisions of Section 95 of the IBC and Rule 7(2) to the

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## Parties

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

## Timeline

- **2017-06-02 — Account decla…**: The account of the Corporate…
- **2019-07-30 — Notice under SARFAESI…**: The Creditor issued a notice under…

## 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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