Authority: National Company Law Tribunal, Ahmedabad Bench (Court-2)
Order Date: 08/06/2026
Case Overview
The National Company Law Tribunal (NCLT) Ahmedabad heard proceedings under Section 95 of the Insolvency and Bankruptcy Code, 2016, in matter C.P.(IB)/398(AHM)2025 and connected IA/1418(AHM)2025. The application was filed by Small Industries Development Bank of India (SIDBI) as financial creditor against Mr. Hareshkumar R Bhaoldiya, the personal guarantor of corporate debtor Aricon Papers Pvt Ltd.
The proceedings were initiated under Section 95 IBC for initiation of insolvency resolution process against the personal guarantor. The Resolution Professional (Mr. Manish Bhagat) had filed his report under Section 99 of IBC 2016 and served copies to all respondents. During proceedings, it emerged that parallel debt recovery proceedings before the Debt Recovery Tribunal (DRT) had resulted in a settlement arrangement where the principal borrower was making payments against the outstanding debt.
Final Outcome
The NCLT disposed of both applications (C.P.(IB)/398(AHM)2025 and IA/1418(AHM)2025) as infructuous. The tribunal noted that:
- The respondent personal guarantor is also a party in the DRT matter
- An amount of ₹6.51 crores has already been paid in compliance with the DRT order
- The remaining amount will be paid in due course as per the DRT order
- The financial creditor is accepting these payments
- The settlement through DRT proceedings made the IBC proceedings unnecessary
The tribunal directed the applicant financial creditor (SIDBI) to pay the fees of the Resolution Professional as per IBBI guidelines within 7 days. The bench comprised Mrs. Chitra Hankare (Member Judicial) and Dr. Velamur G Venkata Chalapathy (Member Technical).
Topics: Personal Guarantor Insolvency, Debt Recovery Tribunal