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

> NCLT judgment dated 2022-04-29. Citation: TCN-2022-NCLT-02940. 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-02940
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-sunku-vasaundhara-iba7202020-93932378

## 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 the personal guarantor, Mrs. Sunku Vasundhara, in relation to the corporate debtor, M/s. Nathella Sampath Jewelry Private Limited, which is under liquidation. A common order was previously 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, the corporate debtor. The corporate debtor is already under liquidation, with a liquidation order passed on 2020-01-03. 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 default. The Resolution Professional requested Mrs. Sunku Vasundhara to provide confirmation of repayment, but she failed to respond. The Adjudicating Authority considered the report and admitted the application,

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## Issues and analysis

### Issue 1: Whether the application filed by State Bank of India against the personal guarantor, Mrs. Sunku …

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

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

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**Interpretation:** The Adjudicating Authority interpreted Section 100 of the Code to mean that if

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**Application:** Based on the Resolution Professional's report and the Respondent's failure to

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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 application under section 95 of the Code seeking…

## 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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