# In the matter of State Bank of India Vs. V Samba Siva Rao, CP(IB)/226/2022

> NCLT judgment dated 2022-07-29. Citation: TCN-2022-NCLT-01520. The case pertains to a Company Petition IB/226/2022 filed under Section 95 of the Insolvency…

- **Court:** NCLT
- **Order date:** 29 Jul 2022
- **Citation:** TCN-2022-NCLT-01520
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-v-samba-siva-rao-cp-a3064481

## Summary

### Background

The case pertains to a Company Petition IB/226/2022 filed under Section 95 of the Insolvency and Bankruptcy Code (IBC) of 2016. The petition was filed by State Bank of India Stressed Assets Management Branch-II against V Samba Siva Rao. The court initiated an interim moratorium and appointed Mr. Raghu Babu Gunturu as the Resolution Professional (RP).

## Facts

State Bank of India Stressed Assets Management Branch-II filed a Company Petition (IB/226/2022) against V Samba Siva Rao under Section 95 of the IBC. The court initiated an interim moratorium as per Section 96(1) of the IBC, which stays any legal action or proceeding pending in respect of any debt and prevents creditors from initiating any new legal action or proceedings. Mr. Raghu Babu Gunturu was appointed as the Resolution Professional (RP) and is required to submit a report within 10 days. The Financial Creditor is directed to provide a copy of the order and application to the RP and to notify the Respondent. The Financial Creditor is also required to pay Rs. 50,000 to the RP for expenses.

## Issues and analysis

### Issue 1: Whether an interim moratorium should be initiated under Section 96(1) of the IBC upon the filing of …

**Ratio:** Section 96(1) of the IBC mandates the commencement of an interim moratorium upon the

…

**Reasoning:** The court reasoned that the conditions for initiating an interim moratorium under Section

…

**Interpretation:** Section 96(1) is interpreted to mean that once an application is filed under

…

**Application:** The court applied Section 96(1) to the facts of the case, initiating the

…

## Parties

- **Judges:** DR.VENKATA…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** V Samba Si…

## Timeline

- **2022-07-29 — Hearing…**: Hearing held on 2022-07-29 at…
- **N/A — RP Appoin…**: Mr. Raghu Babu Gunturu appointed…

## 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-v-samba-siva-rao-cp-a3064481