# 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-02289. 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-02289
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-sonal-garg-cp-a6cdbb0b

## 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, who is the Personal Guarantor of M/s Alupan Composite Panels Pvt. Ltd, the Corporate Debtor. The application was filed due to the corporate debtor's inability to pay its debts.

## 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, the Personal Guarantor of M/s Alupan Composite Panels Pvt. Ltd (Corporate Debtor). A limited notice was issued to the Respondent/Personal Guarantor. Upon filing the application, an interim-moratorium commenced under Section 96 (1) (a) of the IBC, prohibiting legal actions against the personal guarantor's debts. Mr. Vivek Parti was appointed as the Resolution Professional. The IBBI informed about the use of online databases for sections 97(2) and 98(6) of the IBC.

## 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 the fact that

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**Interpretation:** Section 95 provides a mechanism for creditors to recover debts from personal

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**Application:** The court found that the application was maintainable under Section 95 as Ms.

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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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