# 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-02638. 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-02638
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-surapaneni-ramesh-cp-ebb2e645

## 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 NCLT, New Delhi Bench vide order dated 30.01.2019, and the matter is currently pending.

## Facts

Abir Infrastructure Private Limited defaulted on payments to State Bank of India, with a total maximum debt of Rs 107,17,64,543.15 due as of 09.11.2017. The default occurred upon non-payment by the personal guarantor, Mr. Surapaneni Ramesh, on 10.11.2017. Mr. Surapaneni Ramesh had executed deeds of guarantee on 17.09.2013 in respect of the credit facilities. The Applicant Bank issued a statutory Demand Notice dated 28.10.2020 under Rule 7 of the Insolvency and Bankruptcy Rules, 2019 amounting to Rs. 23,37,11,482.86/-. The corporate debtor was already under CIRP by the NCLT, New Delhi Bench vide order dated 30.01.2019. The Applicant issued a Demand Notice in Form B on 28.10.2020 under Rule 7(1) of the IB Rules, 2019, but received no response.

## 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 a creditor to apply for

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**Reasoning:** The court considered the application filed by the financial creditor, State Bank of

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**Interpretation:** Section 95(1) provides a mechanism for creditors to recover debts from personal

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

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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…**: Mr. Surapaneni Ramesh executed deeds of guarantee in respect of credit facilities entered…
- **2017-11-09 — Debt Due…**: Total maximum debt of Rs 107,17,64,543.15 was due and payable by the corporate debtor to…

## 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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