# In the matter of State Bank of India Vs. Yarlagadda Padmavathi, CP(IB)/224/2022

> NCLT judgment dated 2022-07-29. Citation: TCN-2022-NCLT-01516. The National Company Law Tribunal (NCLT), Hyderabad Bench, convened a special bench via video…

- **Court:** NCLT
- **Order date:** 29 Jul 2022
- **Citation:** TCN-2022-NCLT-01516
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-yarlagadda-padmavathi-cp-a8d314a0

## Summary

### Background

The National Company Law Tribunal (NCLT), Hyderabad Bench, convened a special bench via video conference to address Company Petition IB/224/2022. The petition involves State Bank of India Stressed Assets Management Branch-II as the petitioner and Yarlagadda Padmavathi as the respondent. The case pertains to matters under Section 95 of the Insolvency and Bankruptcy Code (IBC).

## Facts

State Bank of India Stressed Assets Management Branch-II filed a Company Petition (IB/224/2022) against Yarlagadda Padmavathi under Section 95 of the Insolvency and Bankruptcy Code (IBC). The NCLT Hyderabad Bench convened a hearing on 2022-07-29 via video conference. The court ordered an interim moratorium to commence from the date of filing the petition, as per Section 96(1) of the IBC. During this period, legal actions against the debtor are stayed, and creditors cannot initiate new actions. Mr. Raghu Babu Gunturu was appointed as the Resolution Professional (RP) and is required to submit a report within 10 days under Section 99 of the IBC. The Financial Creditor is directed to provide the RP with a copy of the order and application, and to pay Rs. 50,000 to the RP

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## Issues and analysis

### Issue 1: Whether an interim moratorium should be imposed 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

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**Reasoning:** The court reasoned that the interim moratorium is a statutory requirement upon the filing

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**Interpretation:** Section 96(1) is interpreted as a mandatory provision that triggers an interim

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**Application:** The court applied Section 96(1) to the present case, ordering the commencement

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## Parties

- **Judges:** Venkata Ramakrishn…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** Yarlagadda…

## Timeline

- **2022-07-29 — NCLT Hea…**: The National Company Law Tribunal (NCLT), Hyderabad Bench, held a hearing via video…
- **2022-07-29 — Interim Moratorium…**: The NCLT ordered the commencement of an interim…

## 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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