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

Order Date: 09/06/2026

Case Overview

The National Company Law Tribunal (NCLT) Ahmedabad heard an application (IA/439(AHM)2024) in the matter of C.P. (IB)/299/AHM/2023 filed under Section 95 of the Insolvency and Bankruptcy Code, 2016. The applicant was Small Industries Development Bank of India (SIDBI), a financial creditor, while the respondent was Ankur Gupta, a personal guarantor. The proceedings were initiated against the personal guarantor for a credit facility granted to a corporate debtor (CD) for which Mr. Gupta had provided a guarantee.

The tribunal noted several critical issues with the application. The financial creditor had recalled the account on 14 November 2018 by issuing a letter to the corporate debtor and invoked the personal guarantee on 28 May 2020. However, the NCLT had previously dissolved the corporate debtor vide its order dated 3 February 2023, which occurred prior to the filing of this application on 10 January 2024. The applicant financial creditor and the resolution professional failed to comply with the tribunal's earlier order dated 02.06.2026, with neither submitting a fresh affidavit nor a satisfactory written statement. The resolution professional was absent during the proceedings, and the report filed under Section 99 of the IBC was found inadequate.

The tribunal raised fundamental questions about the maintainability of the application, specifically how proceedings against a personal guarantor could survive when the principal corporate debtor had already been dissolved. The application was found to not satisfy both limitation and maintainability criteria.

Final Outcome

The NCLT Ahmedabad bench, comprising Member (Judicial) Mrs. Chitra Hankare and Member (Technical) Dr. Velamur G Venkata Chalapathy, rejected the resolution professional's report and dismissed both IA/439(AHM)2024 and the main petition C.P. (IB)/299/AHM/2023 as not maintainable. The primary reason cited was that the financial creditor, being a secured creditor, attempted to initiate proceedings against a personal guarantor after the corporate debtor had already been dissolved by the tribunal's prior order.

Topics: Insolvency Proceedings, Personal Guarantee