Authority: National Company Law Tribunal (NCLT), New Delhi Court-IV

Order Date: 11 June 2026

Case Overview

This order pertains to two Interlocutory Applications (IAs) filed in connection with Company Petition (CP) IB/745/ND/2023, which was originally filed by Indian Bank under Section 95 of the Insolvency & Bankruptcy Code, 2016, against a personal guarantor (Apresh Garg).

The first application, IA/3528/ND/2025, was filed under Rule 11 of the NCLT Rules, 2016. The applicant sought to substitute the name of the petitioner from Indian Bank to National Asset Reconstruction Company Limited (NARCL). The basis for this request was an Assignment Agreement dated 30 December 2024, through which the debt in question was assigned from Indian Bank to NARCL. Counsel for the personal guarantor was present and raised no objection to this substitution.

The second application, IA/2564/ND/2026, was filed by the new petitioner, NARCL. It sought permission to withdraw the underlying Section 95 petition entirely. The reason for withdrawal was that a settlement had been reached with the personal guarantor. The petition had not been admitted by the NCLT at the time of this application. Counsel for the personal guarantor was again present and had no objection to the withdrawal.

Final Outcome

The bench, comprising Member (Judicial) Shri Mahendra Khandelwal and Member (Technical) Shri Atul Chaturvedi, allowed both applications. The tribunal ordered the substitution of NARCL as the petitioner in place of Indian Bank in CP IB/745/ND/2023. Subsequently, it granted liberty to NARCL to withdraw the petition under the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. The main petition (CP IB/745/ND/2023) was dismissed as withdrawn. The registry was instructed to note the default amount mentioned in part 3 of the company petition, which was ₹51,07,40,896 (₹51.07 crore), for its case status reports. All other pending IAs, if any, were declared infructuous and dismissed.

Topics: Debt Assignment, Personal Guarantor Insolvency, NCLT Proceeding