Authority: National Company Law Tribunal, Division Bench, Court-1, Ahmedabad

Order Date: 10/07/2026

Case Overview

The State Bank of India (Financial Creditor) filed a petition under Section 121 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate bankruptcy proceedings against Shri Bharat Bhushan Jain, who acted as a personal guarantor for the corporate debtor, M/s. Sysco Industries Limited. The petition was accompanied by an Interlocutory Application (IA/935(AHM)2026) seeking condonation of a 9-day delay in filing the main petition, which was beyond the three-month period specified in Section 121(2) of the IBC.

The tribunal considered precedents from the NCLAT Chennai Bench (Satyanarayana Malla v. State Bank of India, 2025) and the NCLT Kochi Bench (Kerala Financial Corporation v. Bharath Chandran, 2025), which held that the three-month time limit under Section 121(2) is directory and not mandatory. The FC's debt claim against the personal guarantor, as on 27.01.2026, amounted to Rs. 1,43,70,08,732.08 (One Hundred Forty-Three Crore Seventy Lakh Eight Thousand Seven Hundred Thirty-Two and Eight Paise).

The petition was supported by extensive documentation, including the original guarantee deed dated 21.10.2016, a DRT order dated 20.11.2019, the NCLT admission order for the corporate insolvency resolution process (CIRP) of Sysco Industries Limited dated 08/09/2021, the resolution plan approval order dated 01.07.2022, and the final closure order of the personal insolvency resolution process (PIRP) dated 17.02.2026.

Final Outcome

The NCLT allowed the IA, condoning the 9-day delay in filing the petition. The main petition (C.P.(IB)/197(AHM)2026) was admitted, and Bharat Bhushan Jain was declared bankrupt. The tribunal appointed Mr. Rajnikant Balubhai Kalsariya (IBBI/IPA-001/IP-P-02988/2025-2026/14606, email: carajnikalsariya@gmail.com) as the Bankruptcy Trustee (BT).

The order includes comprehensive directions: the bankrupt's estate (excluding exempted assets under Section 155(2)) vests with the BT; the BT is to take custody of all assets and hire an asset tracking agency; the BT must issue public notices to creditors and submit periodic reports to the tribunal; and the bankrupt is subject to restrictions, including a prohibition on overseas travel without the tribunal's permission. The bankruptcy order will remain in effect until the debtor is discharged under Section 138 of the IBC.

Topics: Personal Guarantor Bankruptcy, IBC Section 121, Debt Recovery