Authority: National Company Law Tribunal (NCLT), Division Bench, Court - 1, Ahmedabad
Order Date: 09/06/2026
Case Overview
This proceeding was an Interlocutory Application (IA/643(AHM)2026) filed within a main insolvency petition (C.P.(IB)/248(AHM)2024) under Section 95 of the Insolvency and Bankruptcy Code, 2016. The applicant was The Sarvodaya Sahakari Bank Limited, acting through its Resolution Professional, and the respondent was Kailash Shah, a personal guarantor. The specific nature of the relief sought in the application is not detailed in the provided text. After hearing submissions from legal counsel for both parties, the tribunal considered the record and formed its opinion on the merits of the application.
Final Outcome
The tribunal dismissed the interlocutory application, refusing to grant the specific relief or issue any directions as prayed for by the applicant. However, the order provided an alternative recourse for the respondent, Kailash Shah, by granting him liberty to approach the concerned bank (The Sarvodaya Sahakari Bank Limited) directly with a formal proposal for a One Time Settlement (OTS) of the dues. The tribunal directed that if such a proposal is submitted, the bank must consider it and dispose of it in accordance with the applicable guidelines issued by the Reserve Bank of India (RBI) and other governing norms. With these observations, the application was disposed of.
Topics: Insolvency Proceeding, Banking Settlement, NCLT Order