# In the matter of State Bank of India Vs. Sunku Vasaundhara, IBA/720/2020

> NCLT judgment dated 2022-04-29. Citation: TCN-2022-NCLT-02956. The case pertains to an application filed under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 29 Apr 2022
- **Citation:** TCN-2022-NCLT-02956
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-sunku-vasaundhara-iba7202020-17f1c06a

## Summary

### Background

The case pertains to an application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016, and Rule 7(2) of the Insolvency and Bankruptcy Rules, 2019, for initiating the Insolvency Resolution Process for Personal Guarantors to Corporate Debtors. The applicant, State Bank of India, filed the application against Mrs. Sunku Vasundhara, the personal guarantor, for the failure in repayment of a Cash Credit Facility availed by the Corporate Debtor, M/s. Nathella Sampath Jewelry Private Limited, which is under liquidation. A common order was passed for the liquidation of the corporate debtor on 03.01.2020.

## Facts

State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mrs. Sunku Vasundhara, who is the personal guarantor for M/s. Nathella Sampath Jewelry Private Limited. Nathella Sampath Jewelry Private Limited, the corporate debtor, is under liquidation, with a liquidation order passed on 03.01.2020. SBI claims that Mrs. Sunku Vasundhara failed to repay the Cash Credit Facility availed by the corporate debtor. The Resolution Professional, Mr. Anil Kumar Khicha, was appointed and submitted a report confirming the failure of repayment by the personal guarantor despite requests for confirmation. The Adjudicating Authority observed that the Resolution Professional's report complied with Section 99 of the Code. The

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## Issues and analysis

### Issue 1: Whether the application for initiation of Insolvency Resolution Process for Personal Guarantors to …

**Ratio:** Section 100 of the Insolvency and Bankruptcy Code, 2016, provides for the admission of an

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**Reasoning:** The Adjudicating Authority relied on the report of the Resolution Professional, which

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**Interpretation:** Section 95 of the Code allows a creditor to file an application for initiating

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**Application:** Based on the Resolution Professional's report and the observations extracted,

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## Parties

- **Judges:** Ramalingam…; Anil Ku…
- **Appellants:** State Bank of…
- **Respondents:** Nathella Sampath…; SUNKU VASU…

## Timeline

- **2020-01-03 — Liquidation…**: A common order was passed for the liquidation of M/s. Nathella Sampath Jewelry Private…
- **2020-11-03 — Application…**: The Applicant filed the instant applicant under section 95 of the Code seeking initiation…

## 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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