Authority: National Company Law Tribunal, Mumbai Bench-II

Order Date: 18 June 2026

Case Overview

The Bank of Maharashtra (Petitioner/Financial Creditor) filed this petition under Sections 121(1) and 123 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of bankruptcy proceedings against Mrs. Vrunda Suraj Parekh in her capacity as personal guarantor for Macguire Ceramics LLP. The corporate debtor had availed a Cash Credit Facility of Rs. 8,00,00,000 from the bank on 11 June 2012, which was subsequently renewed and revised to Rs. 6,25,00,000 on 10 July 2017. The respondent executed Deeds of Guarantee on 13 June 2012 and 25 September 2013 for Rs. 8,00,00,000 each, and a Balance and Security Confirmation on 09 May 2015 acknowledging outstanding liability.

Upon default by the corporate debtor, the loan account was classified as NPA on 28 September 2017. A Demand Notice in Form B was issued to the respondent on 17 November 2022, but she failed to discharge her obligations. The amount in default stood at Rs. 20,72,62,160.89 as of 15 July 2023 (principal outstanding with unapplied and penal interest).

The petitioner had previously initiated a Personal Insolvency Resolution Process (PIRP) against the respondent under Section 95(1) via CP (IB) No. 734/2023. The NCLT appointed Mr. Nitin Om Kothari as Resolution Professional on 01 December 2023 and admitted the petition under Section 100 on 14 January 2025. The bank's claim of Rs. 23,10,47,764 was admitted, constituting 100% of the Committee of Creditors. During meetings on 08 April 2025 and 01 January 2026, it was determined that no repayment plan had been submitted by the respondent, who lacked sufficient assets to propose one. The creditor then resolved to seek closure of PIRP.

IA (IBC) No. 99(MB)2026 was filed and allowed on 12 January 2026, holding that non-submission of a repayment plan amounted to rejection under Section 114, entitling the creditor to initiate bankruptcy under Section 115(2). The current petition was filed within the statutory 90-day period from the closure order.

Final Outcome

The NCLT admitted the petition and initiated bankruptcy against Mrs. Vrunda Suraj Parekh. Mr. Anil Kashi Drolia (Registration No. IBBI/IPA-001/IP-P-02327/2020-2021/13482) was appointed as Bankruptcy Trustee, with his Authorisation for Assignment valid until 30 June 2026. The estate of the bankrupt vests immediately in the trustee under Sections 128 and 154 without conveyance. A fresh moratorium commences under Section 128(1)(c), replacing the interim moratorium. The bankrupt is subject to disqualifications and restrictions under Sections 140 and 141 from the order date.

The trustee must administer the estate per Chapter V of the Code, issue public notices in newspapers, invite claims, and submit a Preliminary Report within 90 days. Quarterly progress reports are required within 15 days after each quarter end. The bankrupt must submit a statement of financial position within 7 days. The bankruptcy order continues until discharge under Section 138.

Topics: Personal Guarantor Bankruptcy, Debt Recovery, Insolvency Process