Authority: National Company Law Tribunal (NCLT), Ahmedabad Bench - Court 2

Order Date: 15/06/2026

Case Overview

The proceedings involved two Interlocutory Applications (IAs) in the main matter of CP(IB) 386 of 2020, an insolvency petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) by State Bank of India (Applicant) against Shreebhav Polyknits Pvt Ltd (Respondent).

For IA/799(AHM)2022, the Applicant, State Bank of India, sought permission to withdraw its application. The application had been filed against Respondent Nos. 1 to 12 for a claim of Rs. 1,16,18,119 under Sections 43 and 44 of the IBC (pertaining to preferential transactions). A separate claim was filed against Respondent Nos. 1, 2, and 13 for Rs. 17,81,995 under Sections 43 and 44, and for Rs. 5,56,385 under Sections 45 to 48 of the IBC (pertaining to undervalued transactions and extortionate credit transactions). The Bank filed a withdrawal affidavit stating that the suspended management of the corporate debtor had settled their debt with Raj Radhe Finance Ltd., the member of the Committee of Creditors (CoC), making the application infructuous.

For IA/91(AHM)2023, counsel for the respondents submitted that an appeal had been filed with the National Company Law Appellate Tribunal (NCLAT) in April, which was still under scrutiny and not yet numbered. The Tribunal noted that the former Resolution Professional (Ex-RP) had not complied with its previous order dated 06.04.2026, which directed them to make a payment of Rs. 8,56,680 within 15 days. This payment had not been deposited by the date of this order.

Final Outcome

The Tribunal disposed of both applications with specific directions:

1. IA/799(AHM)2022: Permission was granted for its withdrawal. The application was disposed of as withdrawn.

2. IA/91(AHM)2023: The Tribunal directed its registry to refer the matter of the Ex-RP's non-compliance to the Insolvency and Bankruptcy Board of India (IBBI) for necessary action. Counsel for the applicant was directed to take necessary steps and file an IA for the recovery of the unpaid amount of Rs. 8,56,680. The matter was listed for further consideration on 03.07.2026.

The practical consequence is the closure of SBI's claim against the respondents, while a separate proceeding for recovery from the Ex-RP is initiated and will be monitored by the IBBI.

Topics: Insolvency Proceeding, NCLT Order, Debt Settlement