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 under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 filed by State Bank of India (Petitioner) against Ajay Agarwal (Respondent/Personal Guarantor). The petition bears number IBA/711/2020.
During the hearing, the personal guarantor filed an affidavit 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 settlement 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 alleged that while rejecting the proposal, the bank did not consider the Rs. 2.0 Crores amount already deposited. The respondent's counsel also stated that the personal guarantor has agreed to withdraw the petition filed before the Hon'ble High Court regarding declaration of fraud and has forwarded the matter to the bank for consideration.
Final Outcome
Both counsels sought and were granted one week's time for further consideration of the settlement proposal. The Registry was directed to accept the hard copy of the affidavit. The petition and application have been adjourned and listed for next hearing on 03 August 2026.
Topics: Insolvency Proceedings, Banking Dispute