# State Bank of India vs. Shri Carnet Elias Fernandes

> NCLT judgment dated 2026-09-01. Citation: TCN-2026-NCLT-00998. State Bank of India (Financial Creditor/Applicant) filed a petition under Section 95 of the…

- **Court:** NCLT
- **Order date:** 1 Sept 2026
- **Citation:** TCN-2026-NCLT-00998
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-indore/state-bank-of-india-vs-ms-gei-industrial-systems-limited-tutio

## Summary

### Background

State Bank of India (Financial Creditor/Applicant) filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Shri Carnet Elias Fernandes (Personal Guarantor/Respondent) of M/s GEI Industrial Systems Limited (Corporate Debtor). The petition sought the initiation of the Personal Insolvency Resolution Process (PIRP) due to the Corporate Debtor's default on credit facilities and the subsequent invocation of the personal guarantee. A previous NCLAT judgment (17.10.2025) in a related case, which was upheld by the Supreme Court, had already confirmed that the petition was within limitation and the personal guarantee was validly invoked.

## Facts

The Corporate Debtor, M/s GEI Industrial Systems Ltd., 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 Carnet Elias Fernandes (Respondent), Shri Bernard John, and Smt. Everlyn Fernandes executed a Deed of Guarantee in favour of the Applicant.

Further credit facilities were extended to the Corporate Debtor on 30.08.2010, and the Respondent executed a supplemental deed of guarantee.

A fresh deed of guarantee was executed on 23.08.2011 by the Respondent, Mr. Bernard John, and Smt. Everlyn Fernandes.

…

## Issues and analysis

### Issue 1: Whether the Petition was …

**Ratio:** The Demand-cum-Recall Notice dated 30.09.2016 constituted a valid and unequivocal

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**Reasoning:** The Hon'ble NCLAT, in a related case (Company Appeal (AT) (Ins.) No. 1742 of 2024), after

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**Interpretation:** Acknowledgment of debt in balance sheets, even if signed by suspended directors

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**Application:** The Demand-cum-Recall Notice dated 30.09.2016 invoked the guarantee, and

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## Parties

- **Judges:** Brajendra Mani…; Man Mohan Gupta,…
- **Appellants:** State Bank of…
- **Respondents:** M/s GEI Industrial…; Carnet Elias…
- **Other parties:** Rahul A…; M/s Beeta Kone…
- **Advocates:** Mandeep Singh…; Shantnu Cho…

## Timeline

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

## 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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