Authority: National Company Law Tribunal Principal Bench, New Delhi
Order Date: 12.06.2026
Case Overview
The National Company Law Tribunal (NCLT) Principal Bench, New Delhi, comprising Justice Anupinder Singh Grewal (President) and Shri Ravindra Chaturvedi (Member Technical), heard a petition filed by IDBI Bank Limited under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019. The petition sought initiation of Personal Insolvency Resolution Process (PIRP) against Shri Manimay Sengupta, who acted as a personal guarantor for loans availed by M/s SMS Paryavaran Ltd (Corporate Debtor).
The financial creditor (IDBI Bank) had sanctioned a Working Capital Limit of ₹20 crore to SMS Paryavaran Ltd on 21.08.2010, which was subsequently enhanced to ₹33 crore on 20.05.2013 and later restructured to ₹35.25 crore as part of a consortium lending arrangement totaling ₹125.51 crore. The respondent executed multiple personal guarantee agreements dated 04.10.2010, 20.05.2013, 08.05.2014, 03.07.2015, 01.08.2015, and 05.04.2016, and mortgaged several immovable properties as security. The corporate debtor's account was classified as NPA on 28.02.2018, and CIRP was initiated against SMS Paryavaran Ltd on 03.01.2020, with a resolution plan approved on 21.02.2023 where IDBI Bank received ₹4.30 crore as partial payment.
The key issues adjudicated were: (1) whether the petition was filed within limitation period; (2) whether the guarantee deeds were validly invoked and default established; and (3) whether invocation was premature due to ongoing resolution plan implementation. The tribunal found that multiple OTS proposals submitted between 2020-2023 constituted fresh acknowledgements of debt, extending the limitation period. The guarantee invocation was deemed valid through recall notices dated 24.05.2018, guarantee invocation notices dated 15.06.2018, and a final demand notice under Rule 7(1) dated 15.06.2024 for ₹67,70,47,092.82 as on 05.06.2024. The approved resolution plan specifically preserved creditors' rights against personal guarantors until complete implementation.
Final Outcome
The NCLT admitted the petition and initiated insolvency resolution process against Shri Manimay Sengupta. A fresh moratorium under Section 101 was declared for 180 days. Mr. Rahul Jindal (IBBI Registration No. IBBI/IPA-001/IP-P-02649/2021-2022/14048) was confirmed as Resolution Professional and directed to publish public notices, invite claims, and prepare a repayment plan. The financial creditor was ordered to deposit ₹1,00,000 with the RP for expenses. The personal guarantor was directed to cooperate fully, disclose complete asset and liability details as on the order date, 31.03.2024, and 31.03.2025, supported by income tax returns, and provide details of any assets sold in the last two years. The matter was listed for next hearing on 05.08.2026 for status report.
Topics: Personal Guarantor Insolvency, Debt Recovery, NCLT Proceedings