Authority: National Company Law Tribunal, Division Bench, Court-1, Ahmedabad
Order Date: 09/06/2026
Case Overview
This proceeding was filed under Section 95 of the Insolvency and Bankruptcy Code, 2016. The applicant was The Sarvodaya Sahakari Bank Limited through its Resolution Professional, while the respondents were Kailash Shah and Nileshkumar Navinchandra Chokshi. The matter involved an interlocutory application (IA/714(AHM)2026) filed in the main company petition (C.P.(IB)/247(AHM)2024). The tribunal heard submissions from both parties, with Senior Advocate Mr. Dhaval Vyas appearing for the applicant and Advocate Mr. Nipun Singhvi representing the respondents.
Final Outcome
The tribunal dismissed the interlocutory application, refusing to grant the relief sought by the applicant. No directions were issued as prayed for by the applicant. However, the tribunal provided that the applicant/personal guarantor (Kailash Shah) retains the liberty to approach the concerned bank/financial creditor with a proposal for One Time Settlement (OTS). If such a proposal is submitted, the bank/financial creditor may consider and dispose of it in accordance with applicable RBI guidelines and other governing norms. The application IA/714(AHM)2026 was disposed of accordingly.
Topics: Insolvency Proceeding, Banking Settlement