# In the matter of State Bank of India Vs. Sonal Garg, CP (IB) No. 369(ND)/2022

> NCLT judgment dated 2022-06-10. Citation: TCN-2022-NCLT-02280. The State Bank of India filed an application under Section 95 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 Jun 2022
- **Citation:** TCN-2022-NCLT-02280
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-sonal-garg-cp-9c11f8ed

## Summary

### Background

The State Bank of India filed an application under Section 95 of the Insolvency & Bankruptcy Code, 2016, seeking the initiation of the Insolvency Resolution Process against Ms. Sonal Garg, the Personal Guarantor of M/s Alupan Composite Panels Pvt. Ltd, the Corporate Debtor. The application was filed before the National Company Law Tribunal (NCLT), New Delhi Bench-V.

## Facts

State Bank of India filed an application under Section 95 of the Insolvency & Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Ms. Sonal Garg, who is the Personal Guarantor of M/s Alupan Composite Panels Pvt. Ltd (the Corporate Debtor). A limited notice was issued to Ms. Garg. Upon filing the application, an interim-moratorium commenced under Section 96(1)(a) of the IBC, which stays any pending legal action or proceeding in respect of any debt of the personal guarantor and prevents creditors from initiating any legal action or proceedings in respect of any debt. The IBBI informed that online databases may be used for sections 97(2) and 98(6) of the IBC. Mr. Vivek Parti was appointed as the Resolution Professional.

## Issues and analysis

### Issue 1: Whether the application filed by State Bank of India under Section 95 of the Insolvency & …

**Ratio:** Section 95 of the Insolvency & Bankruptcy Code, 2016, allows a creditor to file an

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**Reasoning:** The court considered the application filed by the State Bank of India and found it to be

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**Interpretation:** Section 95 provides a mechanism for creditors to pursue insolvency proceedings

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**Application:** The court applied Section 95 to the facts of the case, finding that State Bank

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; HEMANT KUMAR…
- **Appellants:** State Bank of…
- **Respondents:** M/s Alupan…; SONAL…

## Timeline

- **2022-05-25 — Limited Notic…**: Limited Notice was issued to the Respondent/Personal Guarantor vide order dated…
- **2022-06-03 — IBBI Let…**: IBBI vide letter dt. 3rd June 2022 informed that for the section 97(2) and 98(6) of 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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