# In the matter of State Bank of India Vs. Smt. Rashmi Saxena, CP (IB)/750(PB)/2021

> NCLT judgment dated 2022-07-05. Citation: TCN-2022-NCLT-01873. The State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 5 Jul 2022
- **Citation:** TCN-2022-NCLT-01873
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-smt-rashmi-saxena-cp-0fdc1da6

## Summary

### Background

The State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Ms. Rashmi Saxena, the personal guarantor to the corporate debtor, M/s Zillion Infraprojects Pvt. Ltd. The application was filed due to the corporate debtor's failure to repay outstanding debts of Rs. 90,73,78,607.30. The applicant had sanctioned financial assistance to the corporate debtor, which was reviewed and enhanced over time. The corporate debtor defaulted, leading to the account being classified as NPA. A demand notice was issued to the principal borrower and guarantors, but the outstanding amount remained unpaid. An application under Section 7 of the IB Code filed by L & T Finance Limited

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## Facts

State Bank of India (SBI) sanctioned financial assistance to M/s Zillion Infraprojects Pvt. Ltd. (Corporate Debtor) to the extent of Rs. 17 crores on 23.08.2006. This was later enhanced to Rs. 100 crores on 15.03.2017. Ms. Rashmi Saxena stood as a personal guarantor for the credit facilities availed by the Corporate Debtor. The Corporate Debtor defaulted on repayments, leading to its account being classified as Non-Performing Asset (NPA). SBI issued a demand notice on 14.06.2018, seeking repayment of Rs. 44.88 crores as on 31.05.2018. L & T Finance Limited initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, which was admitted on 05.02.2019. The Resolution Plan was pending approval. SBI invoked the guarantee on 09.09.2021. Ms.

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## Issues and analysis

### Issue 1: Whether the application filed by State Bank of …

**Ratio:** The Hon'ble Supreme Court in suo moto writ petition 3/2020 vide order dated 10.01.2022

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**Reasoning:** The Resolution Professional stated that the application filed by the Financial Creditor

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**Interpretation:** The Supreme Court's order provides clarity on the exclusion of certain periods

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**Application:** The court applied the Supreme Court's order to the facts of the case,

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## Parties

- **Judges:** Ramalingam…; Sh. Avinash Kumar…
- **Appellants:** State Bank of…
- **Respondents:** M/S ZILLION…; Rashmi S…

## Timeline

- **2006-08-23 — Sanction of Financial…**: State Bank of India sanctioned financial assistance of Rs. 17 Crores to Zillion…
- **2017-03-15 — Last Loan S…**: Last loan sanction of Rs. 100 crores…

## 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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