Authority: National Company Law Tribunal, Division Bench (Court-I) Chennai
Order Date: 16 July 2026
Case Overview
The National Company Law Tribunal (NCLT) Chennai heard an application filed under Section 106(1A) of the Insolvency and Bankruptcy Code, 2016 read with Regulation 17B for termination of insolvency proceedings against personal guarantor R Vasuki. The proceedings were initiated against Mrs. R Vasuki, personal guarantor for Suryabalaji Steels Private Limited and Sri Padmabalaji Steels Private Limited, based on an application filed by State Bank of India (Financial Creditor) under Section 95 of IBC, 2016. The insolvency process was initiated vide order dated 28 April 2026 in CP(IB)/81(CHE)/2022, with Mr. R. Sankaran appointed as the Resolution Professional (RP).
The RP made public announcements on 10 May 2026 in New Indian Express (English) and Dinamani (Tamil) - Coimbatore Edition. State Bank of India filed a claim for ₹665,85,43,825.23 on 22 May 2026, which was subsequently revised to ₹312,62,02,252.73 on 10 June 2026. The RP attempted to contact the personal guarantor through multiple emails on 6 May, 11 May, 21 May, 28 May, 1 June, and 23 June 2026 but received no response. In the first meeting of the Committee of Creditors held on 19 June 2026, attended only by State Bank of India, the CoC approved resolutions for filing applications concerning non-cooperation of the personal guarantor and for termination under Regulation 17B due to non-submission of repayment plan.
Final Outcome
The NCLT terminated the insolvency resolution process against personal guarantor R Vasuki under Section 106(1A) of IBC, 2016, as no repayment plan was submitted by the personal guarantor within the stipulated timeline (the deadline was 14 June 2026, being 21 days from the last date for claim submission on 24 May 2026). The Tribunal discharged the Resolution Professional and granted liberty to the creditors or the personal guarantor to file a bankruptcy application against Mrs. Vasuki under Chapter IV of the IBC. A copy of the order was directed to be sent to IBBI for entry in the register.
Topics: Insolvency Proceedings, Personal Guarantee, Banking Debt