# In the matter of State Bank of India Vs. Vijayaraj Surana CP(IB)/226/CHE/2021

> NCLT judgment dated 2022-07-19. Citation: TCN-2022-NCLT-01652. The case involves CP(IB)/226/CHE/2021 filed by State Bank of India against Vijayaraj Surana…

- **Court:** NCLT
- **Order date:** 19 Jul 2022
- **Citation:** TCN-2022-NCLT-01652
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-vijayaraj-surana-cp-0b56e806

## Summary

### Background

The case involves CP(IB)/226/CHE/2021 filed by State Bank of India against Vijayaraj Surana under Section 95(1) of the IBC, 2016. The Learned Counsel, Mr.M.L.Ganesh appeared on behalf of the Petitioner and Learned Counsel, Mr.Guruprasath appeared on behalf of the Respondent through video conferencing. A memo was filed by the Counsel for the Financial Creditor on 04.04.2022. Insolvency proceedings have been initiated under Section 95 by NCLT, Bench-II, Chennai commencing insolvency proceedings vide Order dated 24.06.2022.

## Facts

State Bank of India filed CP(IB)/226/CHE/2021 against Vijayaraj Surana under Section 95(1) of the IBC, 2016. A memo was filed on 04.04.2022 by the Counsel for the Financial Creditor. Insolvency proceedings against the same guarantor had already been initiated under Section 95 by NCLT, Bench-II, Chennai, commencing insolvency proceedings vide Order dated 24.06.2022. The relevance of the existing insolvency proceedings is that it led to the dismissal of the current case.

## Issues and analysis

### Issue 1: Whether CP(IB)/226(CHE)/2021 should be dismissed given that insolvency proceedings have already …

**Ratio:** The legal principle applied is that a court may dismiss a case if the matter is already

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**Reasoning:** The court reasoned that since insolvency proceedings had already been initiated against

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**Interpretation:** The interpretation of the law is that while a creditor has the right to

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

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## Parties

- **Judges:** S. Ramath…; SAMEER…
- **Appellants:** State Bank of…
- **Respondents:** Vijayaraj…

## Timeline

- **2022-04-04 — Memo Fil…**: Counsel for the Financial Creditor…
- **2022-06-24 — Insolvency Proceedings…**: NCLT, Bench-II, Chennai, initiated insolvency proceedings against the same guarantor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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