# In the matter of State Bank of India Vs. Niharika Devi Dinodiya, CP (IB)/386(KB).2021

> NCLT judgment dated 2022-04-21. Citation: TCN-2022-NCLT-04929. The case pertains to an application filed under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Apr 2022
- **Citation:** TCN-2022-NCLT-04929
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/state-bank-of-india-vs-niharika-devi-dinodiya-cp-9fc36df6

## Summary

### Background

The case pertains to an application filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, for initiating the Insolvency Resolution Process against the personal guarantor, Smt. Niharika Devi Dinodiya, of Rythem Overseas Trade Limited (ROTL).

## Facts

State Bank of India filed an application under Section 95(1) of the IBC, 2016 against Smt. Niharika Devi Dinodiya, personal guarantor of Rythem Overseas Trade Limited (ROTL).

ROTL approached State Bank of India for various credit facilities, which were extended by the bank.

Deed of Guarantees were executed by Smt. Niharika Devi Dinodiya towards security for the repayment of loans granted to ROTL.

ROTL and the personal guarantor failed to make payments as per the terms of the agreements.

The loan accounts were classified as NPA on 15/12/2013 due to the failure of the Corporate Debtor to comply with the terms and conditions of the loan account.

CIRP was initiated against ROTL, and subsequently, a liquidation order was passed on 06/01/2021.

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## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the IBC, 2016 for initiating insolvency resolution …

**Ratio:** Based on the facts presented and the provisions of the IBC, 2016, the application is

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**Reasoning:** The corporate debtor defaulted on its obligations, the personal guarantee was invoked,

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**Interpretation:** Section 95(1) allows for the initiation of insolvency resolution process

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**Application:** The Adjudicating Authority found that the conditions for initiating the

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## Parties

- **Judges:** Rohit K…; Harish Chander…; +1 more
- **Appellants:** State Bank of…
- **Respondents:** Rythem Overseas…; Niharika Devi…
- **Other parties:** Neeraj Kumar…
- **Advocates:** Debasish Chakrabar…; Ankan…; +4 more

## Timeline

- **2013-12-15 — NPA Classif…**: Loan accounts…
- **2019-11-07 — CIRP Admi…**: ROTL admitted under CIRP by the National…

## 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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