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 Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019, to initiate bankruptcy proceedings against Smt. Banwari Bai Agarwal, the personal guarantor for corporate debtor M/s Nikhil Refineries Private Limited.

The corporate debtor had availed credit facilities from SBI, initially sanctioned at ₹77 crores on 23 April 2010 and enhanced to ₹100.80 crores on 28 March 2011. The personal guarantor executed a Deed of Guarantee on 21 April 2011 to secure this financial assistance. The account was declared a non-performing asset (NPA) due to default, leading SBI to file OA No.1378 of 2017 before the Debt Recovery Tribunal (DRT), Hyderabad. The DRT issued Recovery Certificate RC.No.43/2023 on 9 February 2023, making the corporate debtor and personal guarantor jointly and severally liable.

The total default amount claimed 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) up to 31 January 2026.

SBI had previously filed CP(IB) No.180/95/HDB/2024 under Section 95 of the IBC, which was admitted by the NCLT on 4 March 2025, initiating insolvency proceedings against the personal guarantor. As no repayment plan was submitted, the Resolution Professional filed IA(IBC) No.1459/2025, seeking closure of insolvency and permission to initiate bankruptcy. The NCLT allowed this application on 10 December 2025, granting SBI liberty to file the present bankruptcy application.

Final Outcome

The NCLT admitted the application and declared Smt. Banwari Bai Agarwal bankrupt. Mr. Murali Mohan Chevuturi (IBBI Regn. No. IBBI/IPA-003/IP-N00307/2020-2021/13464) was appointed as the Bankruptcy Trustee under Section 125 of the IBC. The trustee is directed to take custody of all assets, properties, and actionable claims of the bankrupt, excluding those under Section 155(2) of the Code and Rule 5 of the relevant Rules. The trustee must issue public notices in newspapers to invite creditor claims, submit a preliminary report within 90 days, and provide quarterly progress reports. The bankrupt must submit a statement of financial position within seven days and is subject to disqualifications under Sections 140 and 141 of the IBC. The bankruptcy order remains in effect until discharge under Section 138.

Topics: Personal Guarantor Bankruptcy, Insolvency Proceedings, Debt Recovery