# In the matter of Stressed Assets Stabilisation Fund vs. Anil Rai

> NCLT judgment dated 2024-11-20. Citation: TCN-2024-NCLT-00191. The Stressed Assets Stabilisation Fund (SASF) filed an application under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 20 Nov 2024
- **Citation:** TCN-2024-NCLT-00191
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stressed-assets-stabilisation-fund-vs-anil-rai-1c16edb4

## Summary

### Background

The Stressed Assets Stabilisation Fund (SASF) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy Rules, 2019, seeking initiation of the insolvency resolution process against Anil Rai, the personal guarantor to the corporate debtor, Malvika Steel Ltd. The application was filed due to the corporate debtor's failure to repay outstanding debts, for which Anil Rai had provided a personal guarantee. The corporate debtor had availed credit facilities from IDBI between 1994 and 1999, which later became NPA. SASF, as a special purpose vehicle constituted by the Government of India, acquired these stressed assets. The date of default was 19.07.2016. The applicant issued a loan recall notice

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## Facts

The Stressed Assets Stabilisation Fund (SASF) filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) against Anil Rai, the personal guarantor of Malvika Steel Ltd., the corporate debtor. The corporate debtor availed credit facilities from IDBI between 1994 and 1999, which later became Non-Performing Assets (NPA). SASF, a special purpose vehicle, acquired these stressed assets. The date of default was 19.07.2016. The outstanding debt as of February 1, 2023, was Rs. 3962,20,53,128/-. The applicant issued a loan recall notice dated 02.07.2002 to the Respondent and then initiated recovery proceedings against the Corporate Debtor by filing application i.e O.A. No. 106/2005 on 24.10.2005 before the Debt Recovery Tribunal, New Delhi. The

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## Issues and analysis

### Issue 1: Whether the NCLT Allahabad has territorial jurisdiction to entertain the application under Section …

**Ratio:** Section 60(1) of the IBC stipulates that the Adjudicating Authority for insolvency

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**Reasoning:** The tribunal relied on the judgment of the NCLAT in Company Appeal (AT) (Insolvency)

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**Interpretation:** Section 60(1) of the IBC provides that the NCLT with territorial jurisdiction

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**Application:** In this case, the corporate debtor, M/s Malvika Steel Ltd., has its registered

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Stressed Assets…
- **Respondents:** Malvika Ste…; Sh. Ani…

## Timeline

- **1994-01-01 — Credit Facilities…**: Malvika Steel Ltd. availed credit…
- **2002-07-02 — Account Decla…**: The account of Malvika Steel…

## 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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