NCLT Declares Akash Goyal Bankrupt on Karur Vysya Bank Guarantee

Case Details

Case Name: Karur Vysya Bank vs. Akash Goyal

Parties: Petitioner/Financial Creditor - The Karur Vysya Bank Ltd; Respondent/Personal Guarantor - Mr. Akash Goyal

Court/Authority: National Company Law Tribunal New Delhi Bench (Court-II)

Case Numbers: IA. No. 965/ND/2025 in Company Petition No. (IB)-413/ND/2022

Date of Order: 22.05.2026

Period of Violation/Dispute: Guarantee executed on 10.03.2015; Account classified as NPA on 13.02.2019; Demand notice issued on 07.04.2022.

Parties Involved

Financial Creditor: Karur Vysya Bank, represented by its Chief Manager. Legal representation: Adv. Iswar Mohapatra, Adv. Markandey Kr. Singh, Adv. Animesh Pandey.

Personal Guarantor (Bankrupt): Mr. Akash Goyal, S/o Shri Anil Kumar Goyal, resident of 450, First Floor, Deepali, Pitampura, New Delhi-110034.

Corporate Debtor: M/s Azad Impex Private Limited (beneficiary of the guaranteed loan facilities).

Resolution Professional/Bankruptcy Trustee: Mr. Roshan Lal Jain, IBBI Registration No. IBBI/IPA-001/IP-P00966/2017-18/11587.

Adjudicating Authority: Bench comprising Sh. Ashok Kumar Bhardwaj, Hon'ble Member (J) and Ms. Reena Sinha Puri, Hon'ble Member (T).

Issues / Allegations / Violations

The Financial Creditor, Karur Vysya Bank, sought initiation of bankruptcy against Mr. Akash Goyal under sections 121 and 123 of the Insolvency and Bankruptcy Code (IBC), 2016.
Mr. Akash Goyal had executed a Deed of Guarantee on 10.03.2015 in favour of the Bank, personally guaranteeing loan facilities of Rs. 50,25,00,000 (Fifty Crore Twenty-Five Lakh) extended to M/s Azad Impex Private Limited.
The account of the Corporate Debtor was classified as a Non-Performing Asset (NPA) on 13.02.2019.
A notice under Section 13(2) of the SARFAESI Act, 2002, was issued to the Personal Guarantor on 20.02.2019, recalling the guarantee obligations.
The Personal Guarantor proposed a One Time Settlement (OTS) of Rs. 21 crores via a letter dated 23.02.2021, payable in two tranches (Rs. 12 crores by 31.03.2021 and Rs. 9 crores by 25.09.2021), which remained unpaid.
A formal demand notice dated 07.04.2022 in Form B under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, was issued, calling for discharge of the outstanding debt.

Findings & Observations

The Tribunal found that the main Company Petition (CP (IB)-413/ND/2022) under Section 95(1) of IBC was filed after the Personal Guarantor's failure to comply with the demand notice.
Mr. Roshan Lal Jain was appointed as the Resolution Professional (RP) vide order dated 03.08.2022 under Section 97(5) to examine the application and submit a report under Section 99.
The RP submitted his report under Section 99, recommending admission of the application.
Consequently, vide order dated 23.01.2024, the Tribunal commenced the personal insolvency resolution process against the Personal Guarantor under Section 100 and declared a moratorium under Section 101.
It was recorded that no repayment plan was submitted by the Personal Guarantor under Section 105(1) of the Code.
The RP filed his report under Sections 112 and 113. Vide order dated 29.11.2024, the Tribunal observed that non-submission of a repayment plan entailed consequences akin to its rejection, granting liberty to creditors to initiate bankruptcy proceedings.
The Tribunal was satisfied that the requirements under Chapter III of Part III of the IBC had been duly complied with and that the Personal Guarantor had failed to avail the statutory mechanism for submitting a repayment plan despite adequate opportunity.

Penalties / Settlements / Directions

The Application (IA No. 965/ND/2025) was admitted.
Mr. Akash Goyal was declared bankrupt.
Mr. Roshan Lal Jain was appointed as the Bankruptcy Trustee under Section 125 of the IBC. His details are: IBBI Registration No: IBBI/IPA-001/IP-P00966/2017-2018/11587, E-mail: roshanljain@yahoo.co.uk, Contact Number: 9818398895.
The order of Bankruptcy shall continue to have effect till the Bankrupt is discharged under Section 138 of the IBC.
The Bankrupt is directed to submit his statement of financial position to the Bankruptcy Trustee in the prescribed Form within seven days from the date of the order, as required under Section 129.

Corrective Actions & Future Obligations

The estate of the Bankrupt (excluding assets mentioned in Section 155(2) of IBC read with Rule 5 of the relevant Rules) shall vest with the Bankruptcy Trustee under Sections 128 and 154.
The Bankruptcy Trustee shall take custody and control of all assets, properties, and actionable claims of the Bankrupt for their preservation, protection, security, and maintenance.
The Bankruptcy Trustee shall adhere to the provisions of Sections 128, 129(4), 132, 133, 134, 135, 136, 137, 149, 150, 151, 152, 157, 159, 164, 165, 166, and 167 of the IBC and comply with IBBI Rules and Regulations.
The Bankrupt, his banker, agent, or any person possessing his property/records must deliver them to the Bankruptcy Trustee under Section 157.
The Bankruptcy Trustee must issue a public notice under Section 130(1)(a) within ten days to the creditors mentioned in the statement of affairs and the application.
The public notice inviting claims under Section 130(2) shall be published in two leading newspapers (one English, one vernacular) with wide circulation at the Bankrupt's place of residence.
The Bankrupt shall be subject to the disqualifications and restrictions under Sections 140 and 141 of the Code.
The Bankruptcy Trustee shall administer and distribute the estate in accordance with Chapter V of Part III of the Code.
The Bankruptcy Trustee may call for further information or explanation from any person, who must furnish it within seven days.
The Bankruptcy Trustee shall submit a preliminary report to the Adjudicating Authority within ninety days, serving a copy on the Bankrupt (per Regulation 8 of IBBI Regulations).
The Bankruptcy Trustee shall submit quarterly progress reports within fifteen days of each quarter's end, serving a copy on the Bankrupt (per Regulation 10).
The fee of the Bankruptcy Trustee shall be determined per Regulation 4 of the IBBI (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, with regard to Section 169 of IBC.

Final Ruling & Enforcement

The IA No. 965/ND/2025 in CP (IB) 413/ND/2022 stands disposed of in terms of the aforesaid directions.
The Registry is directed to provide a copy of the Order and the Bankruptcy Petition to the creditors and the Bankruptcy Trustee within one week, as per Section 126(2) of the IBC.
By operation of Section 128(1)(c), no action shall be initiated against the property of the Bankrupt for any debt, and no suit or legal proceeding shall be initiated against the Bankrupt, except with the leave of the Adjudicating Authority.