# In the matter of State Bank of India Vs. Surapaneni Ramesh, CP (IB) No. 303(ND)/2021

> NCLT judgment dated 2022-05-24. Citation: TCN-2022-NCLT-02622. The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 24 May 2022
- **Citation:** TCN-2022-NCLT-02622
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-surapaneni-ramesh-cp-be3080b5

## Summary

### Background

The case involves an application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) r/w Rule 7(2) of the Insolvency and Bankruptcy Rules, 2019 and regulation 4(2) of IBBI Regulations, 2019 for initiating the Insolvency Resolution Process against the personal guarantor, Mr. Surapaneni Ramesh, of Abir Infrastructure Private Limited. The corporate debtor was admitted under CIRP by the National Company Law Tribunal, New Delhi Bench vide order dated 30.01.2019 passed in (IB) No. 893/ND/2018, which is currently pending.

## Facts

Abir Infrastructure Private Limited (Corporate Debtor) owes Rs. 107,17,64,543.15 to State Bank of India (Financial Creditor) as of 09.11.2017. The default occurred due to non-payment by the personal guarantor, Mr. Surapaneni Ramesh, on 10.11.2017. Mr. Surapaneni Ramesh executed deeds of guarantee on 17.09.2013 in favor of the Applicant to secure the repayment of the amount of the Credit Facilities of the corporate debtor. The Applicant Bank issued a Demand Notice in Form B on 28.10.2020 under Rule 7(1) of the IB Rules, 2019, but received no response. The Corporate Debtor was admitted under CIRP by the National Company Law Tribunal, New Delhi Bench vide order dated 30.01.2019 passed in (IB) No. 893/ND/2018, which is currently pending.

## Issues and analysis

### Issue 1: Whether the application for initiating the Insolvency Resolution Process against the personal …

**Ratio:** Section 95(1) of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The court considered the application filed under Section 95(1) of the IBC, 2016, read

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**Interpretation:** Section 95(1) provides a mechanism for creditors to initiate insolvency

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**Application:** The court applied Section 95(1) to the facts of the case, where the personal

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## Parties

- **Judges:** SH. BACHU VENKAT…; SH. VIRENDRA…
- **Appellants:** State Bank of…
- **Respondents:** Abir Infrastructur…; Surapaneni…

## Timeline

- **2013-09-17 — Execution of Guarantee…**: The guarantor, Mr. Surapaneni Ramesh, executed deeds of guarantee in respect of credit…
- **2017-11-09 — Debt Due…**: Total maximum debt of Rs107,17,64,543.15 due and payable by corporate debtor to financial…

## 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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