# In the matter of State Bank of India Vs. T Devender, CP (IB)/127/2022

> NCLT judgment dated 2022-06-21. Citation: TCN-2022-NCLT-02119. The State Bank of India filed a petition under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Jun 2022
- **Citation:** TCN-2022-NCLT-02119
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-t-devender-cp-44c45276

## Summary

### Background

The State Bank of India filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, seeking initiation of the Insolvency Resolution Process against Shri. T Devender, the Personal Guarantor of M/s. Chadalavada Infratech Ltd (Corporate Debtor). The Petitioner Bank had granted various credit facilities to the Corporate Debtor, for which the Personal Guarantor stood as a guarantor for Rs. 243.00 Crores. The credit limits were enhanced/modified, and the Personal Guarantor executed supplemental deed of guarantees and joined as a party to restructuring package agreement,

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## Facts

The State Bank of India (Petitioner Bank) granted credit facilities to Chadalavada Infratech Ltd (Corporate Debtor), with Shri. T Devender acting as the Personal Guarantor for Rs. 243.00 Crores. The Personal Guarantor executed supplemental deeds of guarantee and joined a restructuring package agreement. The outstanding debt as of 15.04.2011 was Rs. 167,56,23,293.24, and the total amount in default was Rs. 250,90,45,531.03. The Petitioner Bank initiated action under SARFEASI Act, 2002, and filed an application under Section 19 of Recovery of Debts and Bankruptcy Act, 1993. The Petitioner Bank also initiated Corporate Insolvency Resolution Process against the Corporate Debtor, which was admitted on 23.09.2021. The Petitioner Bank issued a demand notice dated 21.10.2021

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## Issues and analysis

### Issue 1: Whether an Insolvency Resolution Process can be ordered against the Personal Guarantor under …

**Ratio:** The ratio is based on Section 100 of the Insolvency and Bankruptcy Code, 2016, which

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**Reasoning:** The Adjudicating Authority reasoned that the Personal Guarantor stood as a guarantor to

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**Interpretation:** Section 100 of the Insolvency and Bankruptcy Code, 2016, is interpreted to mean

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** State Bank of…
- **Respondents:** Chadalavada…; T. Deve…

## Timeline

- **2011-04-15 — Non-Performing Account…**: The outstanding debt as on Non-Performing…
- **2010-10-20 — Deed of Gua…**: Deed of Guarantee…

## 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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