Case Overview

This order pertains to Company Petition (IB) No. 238/MB/2026 filed under Section 94 of the Insolvency and Bankruptcy Code (IBC), 2016. The petitioner, Manju Madhusudan Mimani, is a personal guarantor to the corporate debtor, Madhuram Fabrics Private Limited (CIN: U18101MH2001PTC132131).

The corporate debtor had availed credit facilities aggregating ₹11.09 crore from the financial creditor, State Bank of India (SBI), vide a sanction letter dated 17 January 2019. The facilities comprised a Cash Credit facility of ₹7.50 crore, a Term Loan of ₹1.59 crore, a Letter of Credit of ₹1.50 crore, and a Bank Guarantee facility of ₹50 lakh. The petitioner executed deeds of personal guarantee on 24.01.2019, 31.10.2020, 28.05.2020, and 24.09.2021 in favor of SBI.

The corporate debtor defaulted on repayment, leading SBI to classify the account as a Non-Performing Asset (NPA) on 28 November 2022. Subsequently, SBI invoked the personal guarantee by issuing a demand notice under Section 13(2) of the SARFAESI Act on 03 December 2022. The total amount in default, including interest, was ₹13,13,77,781.24 as of 02 December 2022. SBI also took symbolic possession of secured assets and obtained an order for physical possession from a civil court on 17 September 2025.

The petitioner had previously filed an insolvency petition (CP No. 406 of 2025) which was withdrawn with liberty to file a fresh petition. The current petition was filed on 01 March 2026. The court appointed Mr. Udaykumar Bhaskar Bhat (IBBI/IPA-001/IP-P01425/2018-2019/12234) as the Resolution Professional (RP). The RP examined the application, verified the debt and default, and submitted a report dated 05 May 2026 recommending admission of the petition. The RP confirmed the application was complete, within the limitation period, did not pertain to any excluded debt, and that no other application for the same debt was pending.

Final Outcome

The NCLT Bench, comprising Member (Technical) Prabhat Kumar and Member (Judicial) Sushil Mahadeorao Kochey, admitted the petition and initiated the Insolvency Resolution Process (IRP) against the personal guarantor under Section 100 of the IBC, 2016.

The tribunal declared a moratorium on all debts of the guarantor with immediate effect. This moratorium shall cease after 180 days or when the tribunal passes an order on the repayment plan under Section 114, whichever is earlier. During the moratorium period:

  • Any pending legal action or proceeding in respect of any debt is stayed.
  • Creditors cannot initiate any new legal action or proceedings.
  • The debtor cannot transfer, alienate, encumber, or dispose of any assets.

The appointed RP, Mr. Udaykumar Bhat, is directed to publish a public notice on the NCLT website within 7 days to invite claims from all creditors within 21 days. The petitioner is directed to deposit ₹75,000 to the RP's bank account within one week towards his fees and expenses.

Topics: Personal Guarantor Insolvency, NPA Account, Moratorium