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

Order Date: 11 June 2026

Case Overview

The National Company Law Tribunal (NCLT) heard two interconnected applications concerning petition IB/746/ND/2023, originally filed by Indian Bank under Section 95 of the Insolvency & Bankruptcy Code, 2016 against Monika Garg, a personal guarantor to a corporate debtor.

The first application (IA/1417/ND/2026) was filed under Rule 11 of the NCLT Rules, 2016. Indian Bank, the original financial creditor, sought to substitute itself with the National Asset Reconstruction Company Limited (NARCL) as the petitioner. This request was based on an Assignment Agreement dated 30 December 2024, through which Indian Bank had assigned the debt in question to NARCL. Counsel for the personal guarator, Monika Garg, was present and raised no objection to this substitution.

The second application (IA/2536/ND/2026) was subsequently filed by NARCL, the new financial creditor. It sought permission to withdraw the main insolvency petition (IB/746/ND/2023) entirely. The basis for this withdrawal was that a settlement had been reached between NARCL and the personal guarantor, Monika Garg. Counsel for the personal guarator was again present and confirmed they had no objection to the withdrawal. The tribunal noted that the Section 95 petition had not yet been admitted for proceedings.

Final Outcome

The NCLT bench, comprising Member (Judicial) Shri Mahendra Khandelwal and Member (Technical) Shri Atul Chaturvedi, allowed both applications. The tribunal ordered the substitution of NARCL for Indian Bank as the petitioner in CP IB/746/ND/2023. Furthermore, exercising powers under the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, the tribunal granted liberty to NARCL to withdraw the petition. Consequently, CP IB/746/ND/2023 was dismissed as withdrawn.

The tribunal directed the registry 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 report. All other pending interim applications in the matter were declared infructuous and dismissed.

Topics: Debt Assignment, Insolvency Withdrawal, NCLT Proceeding