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

Order Date: 08/06/2026 (as corrected by a Corrigendum Order dated 10/06/2026)

Case Overview

The petition was filed by Bank of Baroda (Applicant/Financial Creditor) under Section 123 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019. It sought the initiation of a bankruptcy process against Mr. Bijal S Shah, a personal guarantor for the corporate debtor, Shubhmangal Exim Pvt. Ltd.

The financial creditor's claim was based on a personal guarantee provided by Mr. Shah for a debt owed by the corporate debtor. The total debt amount, including interest and penalties as of 20 February 2026, was ₹48,20,51,778.83 (Rupees Forty-Eight Crore Twenty Lakh Fifty-One Thousand Seven Hundred Seventy-Eight and Eighty-Three Paise only).

The application was supported by extensive documentation, including the sanction letter, board resolution, guarantee deed, notice under the SARFAESI Act, an admission order against the corporate debtor (dated 20.09.2021), an approved resolution plan for the corporate debtor (dated 08.02.2023), and a record of a prior Personal Insolvency Resolution Process (PIRP) initiated against Mr. Shah. This PIRP, initiated on 14.11.2025 (CP IB No. 265 of 2025), was closed on 22.03.2026 (IA No. 428 of 2026) as it failed to culminate in an approved repayment plan. An order dated 08.12.2025 in IA/414(AHM)2025 had subsequently granted the financial creditor liberty to initiate these bankruptcy proceedings.

The tribunal, comprising Hon'ble Members Mr. Shammi Khan (Judicial) and Mr. Sanjeev Sharma (Technical), heard the applicant's counsel and perused the record. It was satisfied that the requirements of Sections 121 and 123 of the IBC were fulfilled.

Final Outcome

The petition (CP(IB)/173(AHM)2026) was admitted. Mr. Bijal S Shah was declared bankrupt. The tribunal issued a comprehensive set of directives:

  • The estate of the bankrupt, excluding assets covered under Section 155(2) of the IBC, shall vest in the appointed Bankruptcy Trustee.
  • Mr. Chetan Patel (Registration No. IBBI/IPA-002/IP-N00819/2019-2020/12561) was appointed as the Bankruptcy Trustee.
  • The bankrupt must submit a statement of financial position to the trustee within seven days.
  • The trustee is tasked with taking custody of the bankrupt's assets, issuing notices to creditors, making a public announcement, and administering the estate as per the Code.
  • Creditors are barred from initiating any action against the bankrupt's property without leave of the tribunal.
  • The bankrupt is subject to the disqualifications and restrictions specified under Sections 140 and 141 of the IBC, including a prohibition on traveling outside India without the tribunal's prior permission.
  • The bankruptcy order will remain in effect until the debtor is discharged under Section 138 of the IBC.

Topics: Personal Guarantor Insolvency, Bankruptcy Process, NCLT Order