# In the matter of State Bank of India Vs. T Prabhakar, CP (IB)/320/CHE/2021

> NCLT judgment dated 2022-03-11. Citation: TCN-2022-NCLT-03783. The State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Mar 2022
- **Citation:** TCN-2022-NCLT-03783
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-t-prabhakar-cp-9c8532c5

## Summary

### Background

The State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the initiation of the Insolvency Resolution Process against Mr. T Prabhakar, who acted as a personal guarantor to a corporate debtor. A similar application, IBA/785/2020, had already been filed by IDBI Trusteeship Services Limited against the same guarantor, and an Interim Resolution Professional (IRP) had been appointed under Section 97 of the IBC by the Adjudicating Authority vide order dated 06.01.2022.

## Facts

The State Bank of India (SBI) filed an application under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the initiation of the Insolvency Resolution Process against Mr. T Prabhakar, who acted as a personal guarantor to a corporate debtor. Prior to SBI's application, IDBI Trusteeship Services Limited had already filed a similar application (IBA/785/2020) against Mr. T Prabhakar in his capacity as a guarantor. The Adjudicating Authority had appointed an Interim Resolution Professional (IRP) under Section 97 of the IBC on 06.01.2022 in the application filed by IDBI Trusteeship Services Limited. Section 96 of the IBC stipulates that upon filing an application under Section 95, an interim moratorium commences, preventing further applications against

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## Issues and analysis

### Issue 1: Whether the application filed by the State Bank of India under Section 95 of the IBC, seeking …

**Ratio:** The principle is that once an application under Section 95 of the IBC is admitted and an

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**Reasoning:** The court reasoned that a similar application had already been filed by IDBI Trusteeship

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**Interpretation:** Section 95 of the IBC is interpreted to provide a mechanism for initiating

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**Application:** In this case, since IDBI Trusteeship Services Limited had already initiated the

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** The State Bank of…
- **Respondents:** T. PRAB…

## Timeline

- **2022-01-06 — Appointment…**: The Adjudicating Authority appointed an Interim Resolution Professional (IRP) under…
- **2022-03-11 — Order Pron…**: The order dismissing the application of…

## 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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