Authority: National Company Law Appellate Tribunal, Chennai
Order Date: 31 October 2026
Case Overview
The National Company Law Appellate Tribunal (NCLAT) at Chennai heard two connected appeals: Company Appeal (AT) (CH) (Ins) No. 262/2026 filed by Mr. Debashis Bose and Company Appeal (AT) (CH) (Ins) No. 263/2026 filed by Ms. Pragya Jhunjhunwala, both against State Bank of India (Respondent 1) and another respondent. The appeals arise from proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC).
The core dispute centers on a deed of guarantee that forms the foundation for invoking Section 7 of IBC. The case raises multiple complex questions of law that were argued extensively over several days. The key legal issues identified by the tribunal include: (1) whether the deed of guarantee can be taken cognizance of by the tribunal in view of observations/findings made by the West Bengal Electricity Regulatory Commission; (2) how to construe the deed of guarantee's classification of liability extent to non-regulated assets within the context of IBC, if the guarantee is found enforceable; and (3) how to accommodate merits from both sides within the IBC framework if both parties have valid arguments.
The tribunal acknowledged that both sides presented their arguments ably from multiple angles, laying out both facts and legal arguments, presenting a challenging case for resolution.
Final Outcome
The tribunal has reserved judgment and directed both parties to submit their final notes of submission, including extracts from any documents and judgments they rely on, by November 5, 2026. The tribunal noted the Supreme Court's direction to pass an appropriate order by November 24, 2026, and committed to striving to deliver judgment by that date, while acknowledging potential delays due to the complexity of the issues involved.
Topics: Corporate Guarantee Dispute, IBC Section 7 Proceedings, Banking Liability