# In the matter of State Bank of India Vs. Vivek Sachdev, CP (IB)-754/ND/2021

> NCLT judgment dated 2022-06-06. Citation: TCN-2022-NCLT-02405. State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Jun 2022
- **Citation:** TCN-2022-NCLT-02405
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-vivek-sachdev-cp-12c6ecf8

## Summary

### Background

State Bank of India filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Insolvency Resolution Process against Mr. Vivek Sachdev, the personal guarantor of M/s Auto Decor Private Limited. The applicant/creditor had sanctioned facilities to the extent of Rs. 19.65 crores in favor of the Corporate Debtor vide sanction letter dated 09.07.2007, and the facilities were renewed from time to time. The facilities were secured by way of Personal Guarantee of the Debtor/Shri Vivek Sachdev by virtue of the execution of the Deed of Guarantee. The Corporate Debtor was ordered for liquidation vide order dated 04.06.2019.

## Facts

State Bank of India (SBI) sanctioned credit facilities to M/s Auto Decor Private Limited, the Corporate Debtor, starting from 2007. These facilities were secured by a personal guarantee from Mr. Vivek Sachdev. The account of the Corporate Debtor was declared NPA on 31.03.2014. SBI initiated CIRP against the Corporate Debtor, which resulted in a liquidation order dated 04.06.2019. SBI then served a demand notice dated 08.07.2021 to Mr. Vivek Sachdev for outstanding dues amounting to Rs. 72,90,64,845.33/-. SBI filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Mr. Vivek Sachdev in his capacity as the personal guarantor. The application was filed through a Resolution Professional, Mr.

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## Issues and analysis

### Issue 1: Whether the demand notice dated 08.07.2021 is in accordance with Form 'B' under Rule 7 (1) IB …

**Ratio:** The demand notice must comply with the prescribed format and include all necessary

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**Reasoning:** The Guarantor/ Respondent submitted that no authorisation document has been annexed with

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**Interpretation:** The demand notice must strictly adhere to the format prescribed under the rules

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**Application:** The court did not explicitly rule on this issue but noted the guarantor's

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; HEMANT KUMAR…
- **Appellants:** State Bank of…
- **Respondents:** M/s Auto Décor…; Sh. Vivek S…

## Timeline

- **2007-07-09 — Initial Sa…**: Applicant/Creditor sanctioned facilities to the extent of Rs. 19.65 crores in favor of…
- **2014-03-31 — NPA Decla…**: The account of the Corporate…

## 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)

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