Authority: National Company Law Tribunal, Hyderabad Bench – I

Order Date: 18 June 2026

Case Overview

The State Bank of India (SBI) filed an application under Sections 121 and 123 of the Insolvency and Bankruptcy Code, 2016, read with the relevant rules, to initiate bankruptcy proceedings against Mr. Akash Agarwal, a personal guarantor for corporate debtor M/s Nikhil Refineries Private Limited.

The dispute originated from credit facilities sanctioned to Nikhil Refineries, initially for ₹77 crores on 23 April 2010 and enhanced to ₹100.80 crores on 28 March 2011. Mr. Agarwal executed a Deed of Guarantee on 21 April 2011 to secure this debt. The corporate debtor subsequently defaulted, leading SBI to classify the account as a non-performing asset (NPA).

SBI obtained a Recovery Certificate (RC.No.43/2023) from the Debt Recovery Tribunal, Hyderabad, on 9 February 2023, making the corporate debtor and Mr. Agarwal jointly and severally liable for the debt. SBI then initiated insolvency proceedings under Section 95 of the IBC against Mr. Agarwal (CP(IB) No.173/95/HDB/2024), which were admitted by the NCLT on 4 March 2025. As no repayment plan was submitted by the guarantor, the Resolution Professional filed a report (IA(IBC) No. 1451/2025), leading the NCLT to close the insolvency proceedings and grant liberty to SBI to file for bankruptcy on 10 December 2025. The present application was filed in pursuance of that liberty.

The total claimed default amount is ₹143,18,04,433/-(One Hundred Forty Three Crores Eighteen Lakhs Four Thousand Four Hundred Thirty Three Rupees), comprising a principal of ₹52,90,87,234.3/- (Fifty Two Crores Ninety Lakhs Eighty Seven Thousand Two Hundred Thirty Four Rupees and Three Paise) and interest of ₹90,27,17,198.7/- (Ninety Crores Twenty Seven Lakhs Seventeen Thousand One Hundred Ninety Eight Rupees and Seven Paise) calculated until 31 January 2026.

Final Outcome

The NCLT admitted the application and declared Mr. Akash Agarwal a bankrupt. The tribunal issued comprehensive directions, including:

  • The appointment of Mr. Murali Mohan Chevuturi (IBBI Regn. No. IBBI/IPA-003/IP-N00307/2020-2021/13464) as the Bankruptcy Trustee.
  • The vesting of the bankrupt's estate (excluding assets under Section 155(2)) with the trustee, who must take custody and preserve all assets.
  • A requirement for the bankrupt to submit his statement of financial position to the trustee within seven days.
  • The issuance of a public notice in newspapers inviting claims from other creditors.
  • The imposition of all disqualifications and restrictions on the bankrupt as per Sections 140 and 141 of the IBC.
  • A stay on any fresh legal actions against the bankrupt's property without leave of the tribunal.
  • Specific timelines for the trustee to send notices to creditors (within ten days) and submit a preliminary report (within ninety days).
  • The order will remain in effect until the debtor is discharged under Section 138 of the IBC.
  • Topics: Personal Guarantor Bankruptcy, NCLT Order, Debt Recovery