Vaish Associates Advocates secures initiation of personal insolvency process for SBI against Ms. Saranga Agarwal before NCLT Mumbai; parallel proceedings initiated against Mr. Gokul Agarwal and Mr. Anubhav Agarwal
Vaish Associates Advocates is pleased to have represented State Bank of India in successfully securing admission of a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, against personal guarantor Ms. Saranga A. Agarwal (“Personal Guarantor”) before the Hon’ble NCLT, Mumbai [Bench – I] in view of personal guarantee executed to secure facilities availed by A. A. Estates Private Limited. Parallel insolvency processes have also been initiated against the other personal guarantors, Mr. Gokul A. Agarwal and Mr. Anubhav A. Agarwal, in similar petitions arising from the same debt.
The admission order follows protracted, hard-fought proceedings in which the Personal Guarantor raised multiple defenses on limitation (including denial of service of the 2015 SARFAESI notice and challenge to the amended default date), alleged want of proper authorization, objections to Form B (statutory demand notice) and the Section 99 report of the Resolution Professional, and arguments that acknowledgments in balance sheets, compromise documents and OTS proposals of the borrower and co-guarantors could not extend limitation against her. These objections were repelled on the strength of the guarantee covenants, documentary trail (including financial statements and compromise / OTS correspondence) and supporting precedent, culminating in a finding of a live, enforceable claim and continuing default.
The Firm’s team was led by Rishabh Chandra (Principal Associate) independently arguing the matter, robustly supported by Aalisha Sharma (Senior Associate) and Ibrahim Shaikh (Associate) with strategic inputs and guidance from Sandhya Iyer (Senior Partner).