Authority: National Company Law Tribunal, Indore Bench Court No. 1

Order Date: 06 July 2026

Case Overview

The State Bank of India (Applicant/Financial Creditor) filed this bankruptcy application under Sections 121-123 of the Insolvency and Bankruptcy Code, 2016 against Mr. Rakesh Kumar Rajpal (Respondent), the personal guarantor for corporate debtor M/s Rajpal Abhikaran Pvt Ltd. The application follows the failed Personal Insolvency Resolution Process (PIRP) against the guarantor, which was initiated on 18 September 2025 through CP(IB)/41(MP)2021.

The corporate debtor's loan account was classified as Non-Performing Asset (NPA) on 28 June 2019 with default date of 30 August 2019. Despite SARFAESI notices issued on 01 July 2019 and repeated demands, the dues remained unpaid. The PIRP was initiated against the personal guarantor, and Resolution Professional Mr. Sajjan Kumar Dokania was appointed. Despite multiple communications, notices, reminders, and creditor meetings, the respondent failed to submit any repayment plan. In the second creditors' meeting on 18 December 2025, creditors unanimously resolved to authorize the Resolution Professional to approach NCLT for bankruptcy proceedings.

On 13 January 2026, NCLT granted liberty to creditors to initiate bankruptcy proceedings under Sections 121 and 123 of the Code. The current application was filed within the prescribed three-month period from that order.

The admitted debt amount as on the insolvency commencement date (18 September 2025) is ₹13,21,05,082.46 (Thirteen Crores Twenty-One Lakhs Five Thousand Eighty-Two and Forty-Six Paise), plus further interest from 19 September 2025 till realization. The debt is unsecured and remains outstanding.

Final Outcome

The NCLT admitted the petition and declared Mr. Rakesh Rajpal as bankrupt with comprehensive directions:

1. Mr. Rakesh Rajpal of 7, Triveni Colony, Indore, MP 452001 is declared bankrupt

2. Mr. Sajjan Kumar Dokania (Registration No. IBBI/IPA-003/IP-N000150/2017-2018/11729) is appointed as Bankruptcy Trustee

3. The bankrupt must submit his statement of financial position in prescribed form within 7 days

4. The bankruptcy estate vests with the bankruptcy trustee excluding assets mentioned in Section 155(2) of Code

5. The trustee must take custody of all assets, properties, and actionable claims of the bankrupt

6. The trustee is directed to engage professional agencies for tracing undisclosed assets of the personal guarantor

7. The bankrupt is subject to travel restrictions and cannot travel overseas without NCLT permission

8. The trustee must send notices to creditors within 10 days and issue public notices in newspapers

9. The trustee must submit a preliminary report within 90 days and quarterly progress reports

10. The trustee is authorized to seek police assistance for executing his duties

11. The bankruptcy order remains effective until the debtor is discharged under Section 138 of IBC

The registry is directed to provide copies of the order to all parties within one week.

Topics: Personal Guarantee Enforcement, Bankruptcy Process, Debt Recovery