# In the matter of State Bank of India Vs. Tadisetti Amala, CP (IB) No. 58/95/AMR/2022

> NCLT judgment dated 2022-07-04. Citation: TCN-2022-NCLT-01889. The State Bank of India filed a petition against Mrs. Tadisetti Amala, the personal guarantor,…

- **Court:** NCLT
- **Order date:** 4 Jul 2022
- **Citation:** TCN-2022-NCLT-01889
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-tadisetti-amala-cp-9f06848f

## Summary

### Background

The State Bank of India filed a petition against Mrs. Tadisetti Amala, the personal guarantor, and Ethnic Spices Private Limited, the corporate debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The application was filed under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, targeting the personal guarantor of the corporate debtor. The court treated the application as filed only against the personal guarantor, with the corporate debtor formally added.

## Facts

The State Bank of India (SBI), acting as the financial creditor, filed a petition under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Mrs. Tadisetti Amala, the personal guarantor, and Ethnic Spices Private Limited, the corporate debtor. The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP). Ethnic Spices Private Limited had availed credit facilities from SBI, with Mrs. Tadisetti Amala acting as the personal guarantor for these facilities. The total credit facilities amounted to Rs. 40.00 lakhs, comprising both CC and SLC limits. The court treated the application as being primarily against the personal guarantor, Mrs. Tadisetti Amala, with Ethnic Spices Private Limited formally added as a respondent. The court

…

## Issues and analysis

### Issue 1: Whether notice is required to be given to the Personal Guarantor at the stage of appointment of …

**Ratio:** The court relied on Section 99(10) of the IBC, which provides that a copy of the IRP's

…

**Reasoning:** The court reasoned that while the legislature has provided for furnishing the IRP's

…

**Interpretation:** The court interpreted the relevant provisions of the IBC and case laws to

…

**Application:** The court applied the ratio to the facts of the case, concluding that no notice

…

## Parties

- **Judges:** TELAPROLU…
- **Appellants:** State Bank of…
- **Respondents:** Ethnic Spices…; Mrs.Tadisetti…

## Timeline

- **2022-07-04 — Order Da…**: Orders pronounced, vide…
- **2022-08-16 — Next Hearin…**: Matter listed on…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-tadisetti-amala-cp-9f06848f