# In the matter of State Bank of India Vs. Shri Sunder Lal Dugar, CP (IB) No. 212/KB/2021

> NCLT judgment dated 2022-02-21. Citation: TCN-2022-NCLT-04048. The case involves an application under Section 95 of the Insolvency and Bankruptcy Code, 2016.…

- **Court:** NCLT
- **Order date:** 21 Feb 2022
- **Citation:** TCN-2022-NCLT-04048
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-shri-sunder-lal-dugar-cp-613b97b6

## Summary

### Background

The case involves an application under Section 95 of the Insolvency and Bankruptcy Code, 2016. Mr. Kannan Tiruvengadam was initially appointed as the Resolution Professional (RP) on 2022-01-14. However, concerns were raised regarding his eligibility due to his prior involvement as an RP in another related matter (C.P. (IB) No. 1237/KB/2018, Beni Gopal Singh Vs EMC Limited). This prior involvement potentially violated regulations regarding the independence of the RP from the corporate debtor.

## Facts

An application was filed under Section 95 of the Insolvency and Bankruptcy Code, 2016. Initially, Mr. Kannan Tiruvengadam was appointed as the Resolution Professional (RP) on January 14, 2022. State Bank of India is the Financial Creditor. Shri Sundar Lal Dugar is the Respondent/Guarantor. It was brought to the court's attention that Mr. Kannan Tiruvengadam had previously served as the RP in C.P. (IB) No. 1237/KB/2018 (Beni Gopal Singh Vs EMC Limited). Regulation 4(1)(a) of the IBBI (Insolvency Resolution Process for Personal Guarantors) Regulations, 2019, requires the RP to be independent of the guarantor. Explanation (i)(c) of the same regulation states that a person is not independent if they have acted as an RP in respect of the corporate debtor. The Financial

…

## Issues and analysis

### Issue 1: Whether Mr. Kannan Tiruvengadam was eligible to be appointed as the Resolution Professional, given …

**Ratio:** Regulation 4(1)(a) of the IBBI (Insolvency Resolution Process for Personal Guarantors)

…

**Reasoning:** The court reasoned that Mr. Kannan Tiruvengadam's prior service as the RP in C.P. (IB)

…

**Interpretation:** The regulation is interpreted to ensure that the Resolution Professional is

…

**Application:** The court applied the regulation to the specific facts of the case, noting that

…

## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** State Bank of…
- **Respondents:** Sundar Lal…

## Timeline

- **2022-01-14 — Initial RP App…**: Mr. Kannan Tiruvengadam was…
- **2022-02-21 — Order Is…**: The court replaced Mr. Kannan Tiruvengadam with Mr. Tarun Kumar Ray as the Resolution…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-shri-sunder-lal-dugar-cp-613b97b6