State Bank of India Versus Satish Kumar (PIRP admitted on 21.08.2024)

M/s Sri Nangali Rice Mills Private Limited, had availed various cash credit facilities from State Bank of India “Applicant Bank” from time to time. Mr. Satish Kumar, one of the Directors of M/s Sri Nangali Rice Mills Private Limited (Corporate Debtor) extended personal guarantee and executed a guarantee for ₹20 Crore loan, which was later increased to ₹25 Crores on 15.12.2014 following an enhancement of the cash credit limit.

Due to the default on the part of the Corporate Debtor, the account was classified as a Non-Performing Asset (NPA), making Mr. Satish Kumar liable for the repayment. Following his failure to fulfill this obligation, the State Bank of India initiated proceedings under Section 95 of the Insolvency and Bankruptcy Code, 2016, before the Hon'ble NCLT, Court-I, Chandigarh. The petition, titled State Bank of India vs. Sh. Satish Kumar (C.P. (IB) No. 252/Chd/PB/2023), was filed on 20.09.2023.

The Hon'ble Adjudicating Authority, by order dated 19.12.2023, appointed Mr. Rajender Kumar Jain as the Resolution Professional. Subsequently, on 21.08.2024, the Hon'ble NCLT admitted the personal insolvency resolution process of Mr. Satish Kumar under Section 100 of the Insolvency and Bankruptcy Code, 2016.

In furtherance of the directions issued by the AA in the aforesaid order and in compliance of Section 102 of the Insolvency and Bankruptcy Code, 2016, the RP has issued the public notice on 28.08.2024 inviting claims from all creditors within 21 days of such issue. The copy of the said Public Notice has been made available on the webpage of the Personal Guarantor.