# State Bank of India vs. Shri Bernard John

> NCLT judgment dated 2026-09-01. Citation: TCN-2026-NCLT-00997. State Bank of India, as Financial Creditor, filed a petition under Section 95 IBC against Shri…

- **Court:** NCLT
- **Order date:** 1 Sept 2026
- **Citation:** TCN-2026-NCLT-00997
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-indore/state-bank-of-india-vs-ms-gei-industrial-systems-limited-qepxc

## Summary

### Background

State Bank of India, as Financial Creditor, filed a petition under Section 95 IBC against Shri Bernard John, a personal guarantor for M/s GEI Industrial Systems Limited (Corporate Debtor), seeking initiation of the Personal Insolvency Resolution Process (PIRP). The Corporate Debtor had availed credit facilities from a consortium of banks, including SBI, and Shri Bernard John executed deeds of guarantee. The Corporate Debtor's account was classified as NPA, and a demand-cum-recall notice was issued. Insolvency proceedings were initiated against the Corporate Debtor, and SBI filed its claim. The NCLT initially dismissed the petition, citing limitation and invalid acknowledgment of debt.

## Facts

M/s GEI Industrial Systems Ltd., the Corporate Debtor, was incorporated on 28.12.1993.

The Corporate Debtor, along with six other consortium banks, approached the Applicant (State Bank of India) for credit facilities.

On 24.03.2009, a loan agreement was executed between the Corporate Debtor and the Applicant.

On 24.03.2009, Shri Bernard John, Mr. C.E. Fernandes, and Smt. Evelyn Fernandes executed a Deed of Guarantee in favour of the Applicant.

Further credit facilities were extended to the Corporate Debtor on 30.08.2010.

A fresh deed of guarantee was executed on 23.08.2011 by the Respondent, Mr. C.E. Fernandes, and Mrs. Evelyn Fernandes.

Credit facilities were further enhanced in 2015, and a new loan agreement was executed on 31.03.2015.

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## Issues and analysis

### Issue 1: Whether the Petition was …

**Ratio:** The NCLAT held that the

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**Reasoning:** The Demand-cum-Recall Notice dated 30.09.2016 constituted a valid invocation,

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**Interpretation:** Acknowledgment of debt in corporate debtor's balance sheets, even if signed by

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**Application:** The NCLT, on remand, adopted these findings, concluding that the petition,

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## Parties

- **Judges:** Brajendra Mani…; Man Mohan Gupta,…
- **Appellants:** State Bank of…
- **Respondents:** M/s GEI Industrial…; Bernard…
- **Other parties:** C.E. Fern…; Evelyn Fer…; +2 more
- **Advocates:** Mandeep Singh…; Vijayesh…; +1 more

## Timeline

- **1993-12-28 — Corporate Debtor…**: M/s GEI Industrial Systems Ltd. was incorporated…
- **2009-03-24 — Loan Agreement &…**: A loan agreement was executed between the Corporate Debtor and the Applicant (State Bank…

## 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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