# In the matter of State Bank of India Vs. Sudesh Sharma, CP (IB) No. 917/ (PB)/2020

> NCLT judgment dated 2022-02-25. Citation: TCN-2022-NCLT-03962. The case involves an application filed by the State Bank of India (SBI) under Section 95(1) of…

- **Court:** NCLT
- **Order date:** 25 Feb 2022
- **Citation:** TCN-2022-NCLT-03962
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-sudesh-sharma-cp-dc0ac559

## Summary

### Background

The case involves an application filed by the State Bank of India (SBI) under Section 95(1) of the Insolvency & Bankruptcy Code against Ms. Sudesh Sharma. The application pertains to a personal guarantor who has passed away. SBI sought permission to initiate bankruptcy proceedings against the legal heirs of the deceased guarantor.

## Facts

State Bank of India filed an application. The application is related to a personal guarantor who is now deceased. SBI sought permission to initiate bankruptcy proceedings against the legal heirs of the deceased guarantor. The court considered the application under Section 123(5) of the IBC. The relevance of the guarantor's death is that it necessitates proceeding against the legal heirs instead of the guarantor directly.

## Issues and analysis

### Issue 1: Whether the State Bank of India should be granted liberty to file bankruptcy proceedings against …

**Ratio:** The legal principle applied is that bankruptcy proceedings can be initiated against the

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**Reasoning:** The court reasoned that since the personal guarantor had died, and SBI sought to continue

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**Interpretation:** Section 123(5) of the IBC is interpreted to allow for the continuation of

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**Application:** The court applied the principle by granting SBI the liberty to file bankruptcy

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## Parties

- **Judges:** Ramalingam…; Sh. Avinash K.…
- **Appellants:** State Bank of…
- **Respondents:** Sudesh S…
- **Advocates:** Pankaj Kumar…; Ashwani S…; +1 more

## Timeline

- **2022-02-25 — Order Del…**: The order was delivered on February 25, 2022, granting liberty to SBI to file bankruptcy…

## 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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