Authority: National Company Law Tribunal, New Delhi Bench, Court-III

Order Date: 09.06.2026

Case Overview

The National Company Law Tribunal (NCLT) presided over two interconnected applications (IA-3478/2024 and IA-5572/2025) within the main insolvency proceeding IB-696(ND)/2021. The main application was filed by State Bank of India (SBI) under Section 95 of the Insolvency and Bankruptcy Code, 2016 (Code) against Mrs. Babita Nayar, a personal guarantor for corporate debtor Woolways India Limited, for a debt of ₹44,62,37,339.12.

The first application (IA-3478/2024) was filed by SBI under Section 60(5) of the Code. It sought modification of the NCLT's order dated 22.03.2024, which had directed SBI to deposit ₹2,00,000 into the bank account of the Resolution Professional (RP), Mr. Ashish Agarwal, towards his fee. SBI contended that a prior appointment letter dated 04.09.2021 had already fixed the RP's total fee at ₹2,10,000 for handling the insolvency of two guarantors (Mrs. Babita Nayar and Mr. Rakesh Nayar) and that it had already paid ₹61,922. The RP opposed this application, arguing it was an impermissible attempt to review a final order and that the 2021 fee was not suitable for work spanning over three years.

The second application (IA-5572/2025) was filed by the RP under Sections 112, 114, and 115(1) of the Code. This was a report seeking the NCLT's approval for a repayment plan submitted by the personal guarantor, Mrs. Babita Nayar. The Personal Insolvency Resolution Process (PIRP) was initiated against her on 22.03.2024. A repayment plan dated 23.09.2025 was presented to creditors, and a meeting was convened on 25.09.2025. Voting concluded on 30.10.2025.

Final Outcome

For IA-3478/2024 (Fee Dispute): The NCLT disposed of the application. It clarified that its earlier direction for SBI to deposit ₹2,00,000 was an "interim facilitative measure" to ensure the process had initial funding and was not an adjudication on the final fee payable to the RP. The tribunal declined to rule on the fee dispute between SBI and the RP, leaving the matter to be governed by their prior agreement and applicable regulations.

For IA-5572/2025 (Repayment Plan Approval): The NCLT approved the repayment plan. The plan, valued at ₹1.89 crores (₹1,89,33,000), proposes full and final settlement of all creditor claims to be completed within 5 months from the date of the NCLT's approval. The plan was approved by creditors representing 59.02% of the voting share (SBI: 57.24%, Ramsons Tyres: 1.26%, Sai Industries: 0.52%). Standard Chartered Bank (40.98%) initially abstained but later conveyed its support. The funds will be sourced from the sale of specific immovable properties and financial assistance from friends and relatives. The RP is directed to open an escrow account with SBI, Ludhiana, to receive and distribute the funds, supervise the plan's implementation, and file a final report upon completion. Upon successful implementation, the liabilities of the personal guarantor will be settled as per the plan.

Topics: Personal Guarantor Insolvency, Debt Resolution, NCLT Proceeding