Authority: National Company Law Tribunal, Division Bench (Court-I) Chennai
Order Date: 16.07.2026
Case Overview
The National Company Law Tribunal (NCLT) Chennai heard an application (IA(I.B.C)/1198(CHE)2026) filed under Section 106(1A) of the Insolvency and Bankruptcy Code, 2016 read with Regulation 17B for termination of insolvency proceedings against Mr. M. Ravichandran, who served as personal guarantor for Suryabalaji Steels Private Limited and Sri Padmabalaji Steels Private Limited.
The insolvency resolution process against Mr. Ravichandran was initiated on 28.04.2026 based on an application filed by State Bank of India (the financial creditor) under Section 95 of IBC, 2016 in CP(IB)/105(CHE)/2022. Mr. R. Sankaran was appointed as the Resolution Professional (RP).
The RP made public announcements on 10.05.2026 in New Indian Express (English) and Dinamani (Tamil) - Coimbatore Edition as required under Section 102 read with Regulation 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019.
State Bank of India filed a claim of ₹665,85,43,825.23 on 22.05.2026, which was subsequently revised to ₹312,62,02,252.73 on 10.06.2026. The claim was admitted subject to verification, reconciliation, and revision.
The RP attempted to contact the personal guarantor through multiple emails sent on 06.05.2026, 11.05.2026, 21.05.2026, 28.05.2026, 01.06.2026, and 23.06.2026, but received no response. The personal guarantor also did not attend the first meeting of creditors held on 19.06.2026, which was attended only by State Bank of India as the sole creditor.
The Committee of Creditors passed resolutions approving the filing of this application due to the personal guarantor's non-cooperation and failure to furnish complete information and records, as well as the non-submission of a repayment plan.
Final Outcome
The NCLT terminated the insolvency resolution process against Mr. M. Ravichandran under Section 106(1A) of IBC, 2016 due to the personal guarantor's failure to submit a repayment plan by the statutory deadline of 14.06.2026. The Resolution Professional was discharged from his duties. The creditors (State Bank of India) and the personal guarantor were granted liberty to file a bankruptcy application against Mr. M. Ravichandran under Chapter IV of the Insolvency and Bankruptcy Code. A copy of the order was directed to be sent to the Insolvency and Bankruptcy Board of India (IBBI) for entry in their register.
Topics: Insolvency Proceedings, Personal Guarantor, Bankruptcy