Authority: National Company Law Tribunal Hyderabad Bench-I
Order Date: 18 June 2026
Case Overview
The State Bank of India (Financial Creditor/Applicant) filed an application under Section 121 read with Section 123 of the Insolvency and Bankruptcy Code, 2016, along 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 Mr. Sandeep Kumar Agarwal, personal guarantor for M/s Nikhil Refineries Private Limited (Corporate Debtor).
The Corporate Debtor had availed credit facilities of Rs. 77 crores from SBI, later enhanced to Rs. 100.80 crores through sanction letters dated 23.04.2010 and 28.03.2011. Mr. Agarwal executed a Deed of Guarantee dated 21.04.2011 to secure repayment. The account was declared NPA due to default, leading to OA No.1378 of 2017 before Debt Recovery Tribunal, Hyderabad, which issued Recovery Certificate RC.No.43/2023 dated 09.02.2023 making the Corporate Debtor and personal guarantor jointly and severally liable.
The total default amount is Rs. 143,18,04,433/- comprising principal of Rs. 52,90,87,234.3/- and interest of Rs. 90,27,17,198.7/- calculated until 31.01.2026. The tribunal had previously admitted Mr. Agarwal into insolvency proceedings vide order dated 04.03.2025 in CP(IB) No. 171/95/HDB/2024. As no repayment plan was submitted, the Resolution Professional filed IA(IBC) No. 1450/2025 seeking closure of insolvency and permission for bankruptcy initiation, which was allowed vide order dated 18.11.2025.
Final Outcome
The NCLT declared Mr. Sandeep Kumar Agarwal bankrupt and appointed Mr. Murali Mohan Chevuturi (IBBI Regn. No IBBI/IPA-003/IP-N00307/2020-2021/13464) as Bankruptcy Trustee. The bankruptcy estate (excluding assets under Section 155(2) and Rule 5) vests with the trustee who must take custody of all assets and ensure their preservation. The trustee must issue public notices in newspapers inviting creditor claims, submit a preliminary report within 90 days, and provide quarterly progress reports. The bankrupt must submit his statement of financial position within 7 days and is subject to disqualifications under Sections 140 and 141 of IBC. The order remains effective until discharge under Section 138.
Topics: Personal Guarantor Bankruptcy, Debt Recovery, Insolvency Proceedings