# In the matter of State Bank of India Vs. Smt. Savita Lohariwal, CP (IB)/306(KB)/2021

> NCLT judgment dated 2022-05-09. Citation: TCN-2022-NCLT-02806. The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 9 May 2022
- **Citation:** TCN-2022-NCLT-02806
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-smt-savita-lohariwal-cp-acef38d3

## Summary

### Background

The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, by State Bank of India against Smt. Savita Lohariwal, a personal guarantor to Hanumanta Engineering Private Ltd. (HEPL). HEPL had approached the applicant for various credit facilities, which were extended from time to time. The personal guarantor had executed a guarantee on 30/08/2011 to secure the repayment of these facilities. Due to defaults by HEPL, the loan accounts were classified as NPA on 06/08/2012. The financial creditor invoked the personal guarantee on 10/01/2013 and

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## Facts

State Bank of India (SBI) extended credit facilities to Hanumanta Engineering Private Ltd. (HEPL), with Smt. Savita Lohariwal acting as the personal guarantor. A deed of guarantee was executed on 30/08/2011 by the personal guarantor to secure the repayment of the credit facilities. HEPL defaulted on payments, leading to the loan accounts being classified as Non-Performing Assets (NPA) on 06/08/2012. SBI invoked the personal guarantee on 10/01/2013, demanding Rs. 75,74,16,762.00. HEPL was admitted into Corporate Insolvency Resolution Process (CIRP) on 19/08/2019, and subsequently, a liquidation order was passed on 20/02/2020, due to the absence of a feasible resolution. SBI filed an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, to

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## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the IBC, 2016, for initiating the insolvency …

**Ratio:** Section 95(1) of the IBC, 2016, allows a creditor to apply for initiating the insolvency

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**Reasoning:** The court considered the facts presented, including the default by the corporate debtor

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**Interpretation:** Section 95(1) of the IBC, 2016, provides a mechanism for creditors to pursue

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**Application:** Given the default by HEPL and the existence of a personal guarantee by Smt.

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** State Bank of…
- **Respondents:** Hanumanta…; Savita Loh…

## Timeline

- **2011-08-30 — Execution of Personal…**: Smt. Savita Lohariwal executed a personal guarantee in favor of State Bank of India to…
- **2012-08-06 — Loan Account Classified…**: The loan accounts of Hanumanta Engineering Private Ltd. were classified as Non-Performing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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