Authority: National Company Law Tribunal (NCLT), Division Bench, Court - 1, Ahmedabad
Order Date: 08 June 2026
Case Overview
The application (IA/532(AHM)2026) was filed by the Resolution Professional (RP), Mr. Rahul N. Shah, under Rule 11 of the NCLT Rules, 2016 and Regulation 19 of the IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019. It sought a 60-day extension of the Individual Insolvency Resolution Process (IIRP) for Mrs. Mamtaben Hareshbhai Bhalodiya, who is the personal guarantor for the corporate debtor, M/s Aricon Papers Private Limited.
The original application under Section 94 of the Insolvency and Bankruptcy Code, 2016 (IBC) was admitted by the NCLT on 06 October 2025, and Mr. Shah was appointed as the RP. The sole creditor in the process is the Small Industries Development Bank of India (SIDBI). During the process, the corporate debtor and the personal guarantor approached the Debt Recovery Tribunal-II (DRT) in Ahmedabad, which passed an order on 29 January 2026. This DRT order provided a settlement plan for the repayment of outstanding dues in instalments. The RP reported that payments have been made as per this plan, with the final instalment remaining. In the fourth meeting of the creditor held on 01 April 2026, SIDBI resolved to seek an extension of the IIRP by 60 days beyond the initial 180-day period, which was set to expire on 06 April 2026. The reason cited was that additional time was required to complete the repayment process and consider further steps in the resolution.
Final Outcome
The NCLT bench, comprising Member (Judicial) Mr. Shammi Khan and Member (Technical) Mr. Sanjeev Sharma, allowed the application. The period of the IIRP for Mrs. Mamtaben Hareshbhai Bhalodiya is extended by 60 days beyond the 180-day period, effective from 07 April 2026. The RP is directed to proceed in accordance with the provisions of the IBC, 2016 and applicable regulations.
Topics: Insolvency Resolution, Personal Guarantor, Debt Settlement