Authority: National Company Law Tribunal, Mumbai Bench - I

Order Date: 22 June 2026

Case Overview

The National Company Law Tribunal (NCLT) Mumbai Bench heard a Company Petition (C.P. (IB) No. 284/MB/2026) filed by Piyush H. Joshi under Section 94 of the Insolvency and Bankruptcy Code (IBC), 2016. The petitioner, a director and personal guarantor for RNP Marketing & Cargo Private Limited (Corporate Debtor), sought initiation of an insolvency resolution process against himself. The corporate debtor had availed a term loan facility of Rs. 25 crore from ECL Finance Limited, secured by a personal guarantee from the petitioner dated 28 June 2018. This debt, along with associated security interests, was assigned to CFM Asset Reconstruction Private Limited on 14 August 2020, which subsequently became the financial creditor. The corporate debtor's account was classified as a Non-Performing Asset (NPA) from 1 February 2020. The financial creditor issued a demand notice under the SARFAESI Act on 9 March 2021 and formally invoked the personal guarantee on 27 September 2021. The petitioner, unable to discharge his liability, filed this application. The court appointed Mr. Manish Lalji Dawda (IBBI/IPA-001/IP-P-02506/2021-2022/13797) as the Resolution Professional (RP), who examined the application and submitted a report under Section 99 of the IBC on 9 April 2026, recommending admission. The RP confirmed that the application met all requirements under Section 94, that notices were duly issued to both the petitioner and the creditor, and that no evidence of debt repayment was provided by either party.

Final Outcome

The NCLT admitted the application, initiating the Insolvency Resolution Process against the personal guarantor. A moratorium on all debts is declared effective from the order date (22 June 2026) for 180 days, or until the tribunal passes an order on the repayment plan under Section 114, whichever is earlier. During the moratorium, all pending legal proceedings related to any debt are stayed, creditors cannot initiate new actions, and the debtor is prohibited from transferring or encumbering any assets. Mr. Manish Lalji Dawda is confirmed as the Resolution Professional and is directed to publish a public notice on the NCLT website within 7 days to invite claims from all creditors within 21 days. The petitioner is ordered to deposit INR 75,000 to the RP's bank account within one week towards fees and expenses.

Topics: Personal Guarantor Insolvency, Debt Resolution, NCLT Proceeding