Authority: National Company Law Tribunal (NCLT), Hyderabad Bench – I

Order Date: 18 June 2026

Case Overview

The State Bank of India (SBI), the Financial Creditor and Applicant, filed an application (IA(IBC) 403/2026) under Sections 121 and 123 of the Insolvency and Bankruptcy Code (IBC), 2016, read with the relevant rules, to initiate bankruptcy proceedings against Mr. Amit Kumar Agarwal. Mr. Agarwal is the Personal Guarantor for a corporate debt owed by M/s Nikhil Refineries Private Limited.

The dispute originated from credit facilities totaling Rs. 100.80 crores sanctioned by SBI to M/s Nikhil Refineries in 2010-2011. Mr. Agarwal executed a Deed of Guarantee on 21 April 2011 to secure this debt. The Corporate Debtor defaulted on repayment, leading SBI to classify the account as a Non-Performing Asset (NPA). SBI subsequently obtained a Recovery Certificate (RC.No.43/2023) from the Debt Recovery Tribunal (DRT), Hyderabad, on 9 February 2023, which held both the Corporate Debtor and the Personal Guarantor jointly and severally liable for the debt.

SBI had initially filed an insolvency application (CP(IB) No. 174/95/HDB/2024) under Section 95 of the IBC against Mr. Agarwal, which was admitted by the NCLT on 4 March 2025. As Mr. Agarwal failed to submit a repayment plan, the Resolution Professional applied for closure of the insolvency proceedings and permission to initiate bankruptcy. The NCLT granted this permission via its order dated 18 November 2025, leading to the present bankruptcy application.

The total debt claimed by SBI is Rs. 143,18,04,433/-, comprising a principal amount of Rs. 52,90,87,234.3 and accrued interest of Rs. 90,27,17,198.7, calculated until 31 January 2026.

Final Outcome

The NCLT allowed the application and declared Mr. Amit Kumar Agarwal a bankrupt. The tribunal issued comprehensive directions, including:

  • Appointing Mr. Murali Mohan Chevuturi (IBBI Regn. No. IBBI/IPA-003/IP-N00307/2020-2021/13464) as the Bankruptcy Trustee under Section 125 of the IBC.
  • Directing the bankrupt to submit his statement of financial position to the trustee within seven days.
  • Vesting the estate of the bankrupt (excluding exempted assets under Section 155(2)) with the Bankruptcy Trustee, who is to take immediate custody and ensure its preservation.
  • Mandating the trustee to issue notices to creditors and publish a public notice in newspapers inviting claims.
  • Imposing restrictions on the bankrupt as per Sections 140 and 141 of the IBC.
  • Directing the trustee to submit a preliminary report within 90 days and quarterly progress reports thereafter.
  • The bankruptcy order will remain in effect until the debtor is discharged under Section 138 of the IBC.

Topics: Personal Guarantor Bankruptcy, Debt Recovery, Insolvency Process