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

Order Date: 09.06.2026

Case Overview

The National Company Law Tribunal (NCLT) presided over two interconnected applications (IA-3480/2024 and IA-5561/2025) within the main insolvency proceeding IB-699(ND)/2021. The main application was filed by State Bank of India (SBI) under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Mr. Rakesh Nayar, the personal guarantor for the corporate debtor Woolways India Limited, for a debt of ₹44,62,37,339.12. Mr. Ashish Agarwal was appointed as the Resolution Professional (RP).

The first application (IA-3480/2024) was filed by SBI under Section 60(5) of the IBC. It sought to modify the tribunal's earlier order dated 22.03.2024, which had directed SBI to deposit ₹2,00,000 into the RP's bank account as fees. SBI contended that a prior agreement (Appointment Letter dated 04.09.2021) with the RP had set a total fee of ₹2,10,000 for handling the insolvency of two guarantors (Rakesh Nayar and Babita Nayar) and that ₹61,922 had already been paid. The RP opposed the 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-5561/2025) was filed by the RP under Sections 112, 114, and 115(1) of the IBC. It sought the tribunal's approval for a repayment plan presented by the personal guarantor, Mr. Rakesh Nayar, which had been approved by the creditors.

Final Outcome

For IA-3480/2024, the NCLT disposed of the application. It clarified that the direction to deposit ₹2,00,000 in its order dated 22.03.2024 was an interim measure to cover initial expenses for conducting the Personal Insolvency Resolution Process (PIRP) and was not an adjudication on the final professional fees payable to the RP. The tribunal declined to intervene in the fee dispute between SBI and the RP.

For IA-5561/2025, the NCLT approved the repayment plan dated 23.09.2025. The key features of the approved plan are:

  • Total Value: ₹15,10,67,000 (Fifteen Crores Ten Lakhs Sixty-Seven Thousand Only).
  • Term: 11 months from the date of the NCLT's approval (09.06.2026).
  • Payment to Creditors: The plan provides for full and final settlement of liabilities as follows:
  • Secured Financial Creditors: State Bank of India (₹8,60,26,786) and Standard Chartered Bank (₹6,15,82,474), totaling ₹14,76,09,260.
  • Additional Payments by Guarantor: Resolution process costs (₹12,50,000) and operational creditors Ramsons Tyres (₹16,55,673) and Sai Industries (₹5,52,067), totaling ₹34,57,740.
  • Source of Funds: Funds will be raised through the sale of specific immovable properties and support/borrowing from family and friends, as per a detailed 7-installment schedule.
  • Supervision: The RP is directed to open an escrow account with SBI, Ludhiana, to receive and distribute funds, and to supervise the implementation of the entire plan.
  • The tribunal issued specific directions for the RP to file a final report after implementation and to forward all records to the Insolvency and Bankruptcy Board of India (IBBI).

Topics: Personal Guarantor Insolvency, Debt Resolution, NCLT Proceeding