# State Bank of India vs. Vijay Latha Jain

> NCLT judgment dated 2026-07-16. Citation: TCN-2026-NCLT-00764. State Bank of India (Financial Creditor) filed a petition under Section 95 of the Insolvency…

- **Court:** NCLT
- **Order date:** 16 Jul 2026
- **Citation:** TCN-2026-NCLT-00764
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/state-bank-of-india-vs-vijay-latha-jain-mgiws

## Summary

### Background

State Bank of India (Financial Creditor) filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Smt. Vijaylatha Jain (Personal Guarantor) for default by M/s. Suryajyoti Spinning Mills Ltd. (Corporate Debtor). The Personal Guarantor raised several objections regarding the existence and enforceability of the alleged personal guarantee, limitation, suppression of material facts, quantum of liability, and maintainability of the petition, seeking adjudication prior to the appointment of a Resolution Professional under Section 97 of the IBC.

## Facts

State Bank of India (Financial Creditor) filed a Company Petition IB/156/95/2023 under Section 95 of the IBC.

The petition was filed against Smt. Vijaylatha Jain (Personal Guarantor/Respondent No.1) and M/s. Suryajyoti Spinning Mills Ltd. (Corporate Debtor/Respondent No.2).

Smt. Vijaylatha Jain allegedly executed a personal guarantee for securing credit facilities extended to Suryajyoti Spinning Mills Ltd.

The Corporate Debtor committed default in repayment of the financial debt.

The guarantee executed by Respondent No.1 was invoked vide notice dated 15.03.2017.

The petition was filed along with particulars and documents contemplated under Section 95(4) of the IBC.

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## Issues and analysis

### Issue 1: Whether, in a petition filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC), …

**Ratio:** The Adjudicating Authority is not required to conduct an adjudicatory exercise on

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**Reasoning:** The Supreme Court in Dilip B. Jiwrajka v. Union of India unequivocally rejected the

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**Interpretation:** The statutory scheme of the IBC, particularly Sections 95 to 99, does not

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**Application:** The NCLT applied this principle, stating that its enquiry under Section 97 is

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## Parties

- **Judges:** SHRI. RAJEEV…; SHRI. SANJA…
- **Appellants:** State Bank of…
- **Respondents:** Suryajyoti…; Vijay Lath…
- **Other parties:** Sivarama Prasad…
- **Advocates:** Mr.V.V.S.…; Aishw…; +4 more

## Timeline

- **2017-03-15 — Guarantee I…**: The personal guarantee executed…
- **2018-12-03 — Petitioner's Corresponde…**: Petitioner's correspondence addressed to ECGC Ltd. acknowledged the liability of…

## 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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