# In the matter of State Bank of India vs. Umesh Kumar Agarwal

> NCLT judgment dated 2023-11-20. Citation: TCN-2023-NCLT-00710. The case involves an application (IA (IBC) 1764/2023) filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 20 Nov 2023
- **Citation:** TCN-2023-NCLT-00710
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-umesh-kumar-agarwal-e793c650

## Summary

### Background

The case involves an application (IA (IBC) 1764/2023) filed by the Resolution Professional (RP) seeking leave to proceed against the personal guarantor of the Corporate Debtor under Section 121 of the Insolvency and Bankruptcy Code (IBC). The RP contends that despite sufficient opportunity, the personal guarantor has not proposed any repayment plan. The RP also submitted that the personal guarantor had stated no objection for initiation of proceedings under Section 121 of IB Code, as per the minutes of the Committee of Creditors (CoC).

## Facts

The State Bank of India (Stressed Assets Management Branch) filed a petition against Mr. Umesh Kumar Agarwal (G S Oils Limited). The Resolution Professional (RP) filed an application (IA (IBC) 1764/2023) seeking leave to proceed against the personal guarantor under Section 121 of the IB Code. The RP argued that the personal guarantor had not come forward with any repayment plan despite being given sufficient opportunity. The RP also submitted that the personal guarantor had stated that he had no objection for initiation of proceedings under Section 121 of IB Code, as per the minutes of the CoC. The records showed that no repayment plan was submitted by the RP despite opportunity.

## Issues and analysis

### Issue 1: Whether the Resolution Professional should be granted leave to proceed against the personal …

**Ratio:** Section 121 of the IB Code allows for proceedings against a personal guarantor. The

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**Reasoning:** The court reasoned that since the RP had provided sufficient opportunity for a repayment

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**Interpretation:** Section 121 of the IB Code is interpreted to allow proceedings against a

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

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. SANJA…
- **Appellants:** State Bank of…
- **Respondents:** Umesh Kumar…

## Timeline

- **2023-11-20 — Hearing…**: Attendance cum order sheet of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 121 — Application for bankruptcy](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-121)

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