# In the matter of State Bank of India vs. Vijay Shanker Singh

> NCLT judgment dated 2022-10-18. Citation: TCN-2022-NCLT-00708. The case involves an application filed by the State Bank of India (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 18 Oct 2022
- **Citation:** TCN-2022-NCLT-00708
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-vijay-shanker-singh-fc5a9f38

## Summary

### Background

The case involves an application filed by the State Bank of India (Financial Creditor) under Section 95 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Shri Vijay Shanker Singh (Personal Guarantor) of Shivani Alloys Steel Casting Ltd (Corporate Debtor). The Corporate Debtor had availed financial assistance of INR 15 Crores from the Financial Creditor and failed to honor its obligations under various loan agreements. The Personal Guarantor had executed a Guarantee Agreement to secure the repayment of the financial assistance.

## Facts

The State Bank of India, acting as the Financial Creditor, filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Shri Vijay Shanker Singh, the Personal Guarantor of Shivani Alloys Steel Casting Ltd. The Corporate Debtor had availed financial assistance of INR 15 Crores from the Financial Creditor. To secure the repayment of this assistance, the Personal Guarantor executed a Guarantee Agreement. However, the Corporate Debtor failed to meet its obligations under various Loan Agreements dated 06.02.2003, 20.09.2004 and 16.04.2008, leading to the loan account being declared as NPA on 16.04.2012. The Personal Guarantor also failed to pay the outstanding amount, prompting the Financial

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 95 of the Insolvency and …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

…

**Reasoning:** The Adjudicating Authority considered the submissions of the Financial Creditor and the

…

**Interpretation:** Section 95 provides a mechanism for financial creditors to recover debts from

…

**Application:** The Financial Creditor filed the application under Section 95, and the

…

## Parties

- **Judges:** DR.VENKATA…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** Shivani Alloys…; Vijay Shanker…

## Timeline

- **2003-02-06 — Loan Agreeme…**: One of the Loan Agreements executed between the Financial Creditor and the Corporate…
- **2003-02-10 — Guarantee Deed…**: Respondent No.1, Personal Guarantor executed a deed of Guarantee to secure the financial…

## 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-vijay-shanker-singh-fc5a9f38