Authority: National Company Law Tribunal, Division Bench (Court-I) Chennai

Order Date: 16 July 2026

Case Overview

The matter involves an application (IA(IBC)/312(CHE)/2025 in IA/IBC/1888(CHE)/2024) filed by State Bank of India against Ankit Agarwal, who is a Personal Guarantor. The main petition number is IBA/702/2020. The hearing was conducted through video conferencing before a bench comprising Hon'ble Shri. Sanjiv Jain (Member Judicial) and Hon'ble Shri. Venkataraman Subramaniam (Member Technical).

The Personal Guarantor filed an affidavit (S.R. No. 3110 dated 14.07.2026) stating that at the insistence and representation of SBI, the Scheme Proponent had deposited Rs. 2.0 Crores with SBI exclusively for consideration of release of both Personal Guarantee and Corporate Guarantee. This payment was stated to be entirely independent of the consideration payable under the scheme. Additionally, the Scheme Proponent has paid Rs. 22.0 Crores for the implementation of the scheme for all financial creditors. Despite these payments, SBI neither released the guarantees nor refunded the Rs. 2.0 Crores amount. The Guarantors have made a further proposal offering an additional sum of Rs. 75.0 Lakhs over and above the Rs. 2.0 Crores already lying with the bank.

The affidavit alleges that while rejecting the proposal, the bank did not consider the Rs. 2.0 Crores amount already deposited. During the hearing, the Learned Counsel for the Petitioner (SBI) submitted that the Respondent/Personal Guarantor has agreed to withdraw the petition filed before the Hon'ble High Court in relation to declaration of fraud and has forwarded the matter to the bank for consideration.

Final Outcome

Both counsels sought and were granted a week's time for further proceedings. The petition and the application have been listed for next hearing on 03 August 2026. The matter remains pending before the NCLT awaiting the bank's consideration of the guarantor's proposal and the withdrawal of the High Court fraud petition.

Topics: Personal Guarantee, Insolvency Proceedings, Banking Dispute