Authority: National Company Law Tribunal, Division Bench, Court - 1, Ahmedabad
Order Date: 29 June 2026
Case Overview
The National Company Law Tribunal (NCLT), Ahmedabad, heard proceedings under Section 121(1) of the Insolvency and Bankruptcy Code, 2016 (IBC). The application was filed by State Bank of India (SBI) through its Stress Asset Management Branch against respondent Tikhabhai Ranabhai Khamal. The tribunal noted that SBI had filed a compliance affidavit (Inward Diary No. D-5118 dated 23 June 2026) as per its previous order dated 16 June 2026, which was taken on record.
Upon examining the Demand Notice dated 13 April 2021 issued under Section 13(2) of the SARFAESI Act, 2002, the tribunal observed that besides the corporate debtor, immovable properties of eight individuals had been mortgaged to secure the credit facilities. However, SBI had initiated insolvency proceedings under Section 95 of the IBC against only four of these personal guarantors: Hetalben Bhaveshbhai Kakadiya, Yogeskumar Chimanlal Patel, Tikhabhai Ranabhai Khamal, and Nanjibhai Ranabhai Khamal. The tribunal specifically noted that no proceedings appeared to have been initiated against the other four guarantors: Bhavesh Jivrajbhai Kakadiya, Babubhai Kakadiya, Ramaben Khamal, and Vipulbhai Vora.
The tribunal raised a substantive question regarding this selective approach, directing SBI to explain why proceedings under Section 95 of the IBC were initiated only against the four named guarantors and not against all eight individuals who had mortgaged their properties to secure the corporate debtor's facilities.
Final Outcome
The matter was adjourned and re-listed for further consideration on 10 July 2026. The tribunal's order requires SBI to provide a formal explanation for its decision to pursue insolvency proceedings against only a subset of the personal guarantors before the next hearing date.
Topics: Insolvency Proceedings, Personal Guarantors, Banking Law