Authority: National Company Law Tribunal (NCLT), Division Bench, Court - 1, Ahmedabad

Order Date: 12/06/2026

Case Overview

The National Company Law Tribunal (NCLT), Ahmedabad, heard an application filed by SVC Co-Operative Bank Ltd (formerly Shamrao Vithal Cooperative Bank Ltd) under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC). The application sought to initiate the Insolvency Resolution Process against the Respondent, Shreyaba Sohilsinh Zala, who is the personal guarantor to the corporate debtor, M/s Sahar Industries LLP. The application was filed in accordance 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 Tribunal heard the Learned Counsel for the Applicant/Financial Creditor and perused the records. The counsel proposed the appointment of Sun Resolution Professionals Pvt. Ltd. (Registration Number: IBBI/IPE-0064/IPA-1/2023-24/50043) as the Interim Resolution Professional (IRP). The Tribunal verified that the Insolvency Professional's AFA (Authorisation for Assignment) is valid until 30/06/2026.

Final Outcome

The NCLT admitted the application and appointed Sun Resolution Professionals Pvt. Ltd. as the IRP for the respondent/personal guarantor. The IRP is directed to examine the application as per Sections 97(6) and 97(7) of the IBC and submit a report under Section 99 of the Code within ten days. This report must recommend either the acceptance or rejection of the application. A copy of the order and the petition must be served to the IRP by the Applicant/Financial Creditor within three days. The IRP must file its report through a separate Interlocutory Application (IA) after serving it on the respondent/personal guarantor and the corporate debtor. The matter has been listed for the next hearing on 10/07/2026 for consideration of the IRP's report. All challenges to the application are to be taken up at the time of passing a necessary order under Section 100 of the IBC.

Topics: Insolvency, Personal Guarantor, Banking