Authority: National Company Law Tribunal (NCLT), Hyderabad Bench – I

Order Date: 18 June 2026

Case Overview

The State Bank of India (SBI), the Financial Creditor, filed an application under Sections 121 and 123 of the Insolvency and Bankruptcy Code (IBC), 2016, read with the relevant rules, to initiate bankruptcy proceedings against Mr. Vinod Kumar Agarwal. Mr. Agarwal was the personal guarantor for credit facilities availed by M/s Nikhil Refineries Private Limited (the Corporate Debtor).

The Corporate Debtor had initially been sanctioned credit facilities of ₹77 Crores on 23 April 2010, which were enhanced to ₹100.80 Crores on 28 March 2011. To secure this debt, Mr. Vinod Kumar Agarwal executed a Deed of Guarantee dated 21 April 2011 in favour of SBI. The Corporate Debtor subsequently defaulted on its repayments, leading SBI to declare the account as a Non-Performing Asset (NPA).

SBI had previously initiated recovery proceedings by filing OA No. 1378 of 2017 before the Debt Recovery Tribunal (DRT), Hyderabad. The DRT issued Recovery Certificate No. 43/2023 on 9 February 2023, making the Corporate Debtor and the Personal Guarantor jointly and severally liable to pay SBI. SBI then filed an insolvency application under Section 95 of the IBC against the guarantor (CP(IB) No. 172/95/HDB/2024), which was admitted by the NCLT on 4 March 2025. As the Personal Guarantor failed to submit a repayment plan, the Resolution Professional filed a report (IA(IBC) No. 1455/2025) seeking closure of insolvency and permission to initiate bankruptcy. The NCLT allowed this application on 18 November 2025, granting SBI liberty to file the present bankruptcy application.

The total amount in default claimed by SBI is ₹143,18,04,433/- (One Hundred Forty Three Crores Eighteen Lakhs Four Thousand Four Hundred Thirty Three Rupees), comprising a principal amount of ₹52,90,87,234.3 and interest of ₹90,27,17,198.7, calculated until 31 January 2026.

The respondent, Mr. Vinod Kumar Agarwal, was set ex-parte as there was no appearance despite service of notice.

Final Outcome

The NCLT allowed the application and declared Mr. Vinod Kumar Agarwal a bankrupt. The tribunal issued comprehensive directions, including:

  • Appointing Mr. Murali Mohan Chevuturi (IBBI Regn. No. IBBI/IPA-003/IP-N00307/2020-2021/13464) as the Bankruptcy Trustee.
  • Directing the estate of the bankrupt (excluding exempted assets under Section 155(2)) to vest with the Bankruptcy Trustee, who is to take immediate custody of all assets, properties, and actionable claims.
  • Ordering the bankrupt to submit his statement of financial position to the trustee within seven days.
  • Mandating the trustee to issue public notices in newspapers to invite claims from creditors and to adhere to all procedures under the IBC and IBBI regulations.
  • Imposing statutory disqualifications and restrictions on the bankrupt under Sections 140 and 141 of the IBC.
  • Staying any fresh legal actions or proceedings against the property of the bankrupt without the leave of the Adjudicating Authority.
  • Setting timelines for the trustee to submit a preliminary report within 90 days and quarterly progress reports thereafter.

The bankruptcy order will remain in effect until the debtor is discharged under Section 138 of the IBC.

Topics: Personal Guarantor Bankruptcy, NCLT Order, Debt Recovery