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2025 Supreme(Online)(NCLT) 3369
NATIONAL COMPANY LAW TRIBUNAL
Rajeev Bhardwaj, J, Sanjay Puri, T
State Bank of India – Appellant
Versus
Indu Kuri Shyam Prasad Reddy – Respondent
IA (IBC)/283/2025 in Company Petition IB/185/2021
For the Appellants/Petitioners: Mr. GP Yash Vardhan, Mr. G. Srikanth
For the Respondents:
The court established that failure to submit a valid repayment plan and non-compliance with restructuring agreements are grounds for declaring a personal guarantor bankrupt under the IBC.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 95, 121, 123 - Application allowed; Personal Guarantor declared bankrupt due to failure to submit an acceptable repayment plan and non-adherence to restructuring agreements - Bankruptcy process initiated against the personal guarantor of the corporate debtor. (Paras 13, 14)
(B) The court emphasized that since the Personal Guarantor failed to adhere to the repayment plan, bankruptcy proceedings are warranted under the Code. The resolution plan has been rejected, warranting the declaration of bankruptcy and appointment of a trustee.
SL. No.7
NATIONAL COMPANY LAW TRIBUNAL
HYDERABAD BENCH COURT HALL NO: II
Hearing Through: VC and Physical (Hybrid) Mode
CORAM: SHRI. RAJEEV BHARDWAJ – HON’BLE MEMBER (J)
CORAM: SHRI. SANJAY PURI - HON’BLE MEMBER (T)
ATTENDANCE-CUM-ORDER SHEET OF THE HEARING OF NATIONAL COMPANY LAW TRIBUNAL,
HYDERABAD BENCH, HELD ON 23.07.2025 at 10:30 AM
TRANSFER PETITION NO.
IA (IBC)/283/2025 in Company Petition
COMPANY PETITION/APPLICATION NO.
IB/185/2021
NAME OF THE COMPANY Indu Projects Ltd
NAME OF THE PETITIONER(S) State Bank of India
NAME OF THE RESPONDENT(S) Indu Kuri Shyam Prasad Reddy
UNDER SECTION 95 of IBC
ORDER
IA (IBC)/283/2025
Orders pronounced, recorded vide separate sheets. In the result, this Application
is allowed and Personal Guarantor is declared as Bankrupt.
Sd/- Sd/-
MEMBER (T) MEMBER (J)
Apoorva
NATIONAL COMPANY LAW TRIBUNAL HYDERABAD BENCH-II [Under Section 121& 123 of Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy process for Personal Guarantors to Corporate Debtors) Rules, 2019]
Between:
State Bank of India Stressed Assets Management Branch, Secunderabad, 5-9-76, 2nd & 3rd Floor, Prabhat Towers, Opp: SBI Amaravati LHO, Chapel Road, Gun Foundry, Hyderabad- 500 001.
…. Petitioner/Financial Creditor AND Mr. Indukuri Shyam Prasad Reddy Plot No 973/A, Road No. 49, Jubilee Hills, Hyderabad – 500 033.
Office Address: No: 1009, Indu Fortune Fields, 13th Phase, KPHB Colony, Kukatpally, Hyderabad – 500 072 … Respondent No.1/Personal Guarantor M/s. Indu Projects Limited
1009, 13th Phase, KPHB Colony, Kukatpally, Hyderabad – 500 072.
… Respondent No.2 / Corporate Debtor Date of Order:23.07.2025 Coram:
Sri Rajeev Bhardwaj, Hon’ble Member (Judicial)
Sri Sanjay Puri, Hon’ble Member (Technical)
Counsel/Parties present:
For the Applicant : Mr. GP Yash Vardhan and Mr. G. Srikanth, Ld. Counsels [ P E R : B E N C H]
O R D E R
The State Bank of India (“FC//Financial Creditor/Applicant”) has filed this Petition under Form B-Section 121 R/W of the Insolvency and Bankruptcy Code, 2016 r/w Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy for Bankruptcy Process for Personal Guarantors to Corporate Debtor) Rules, 2019 to initiate Bankruptcy Process against the Personal Guarantor of M/s. Indu Projects Limited (“Corporate Debtor/CD”).
Application
1. The Corporate Debtor, M/s. Indu Projects Limited, is engaged in the business of infrastructure construction services and had availed various financial facilities from the State Bank of India (Applicant/Financial Creditor) and its associate banks from time to time.
2. To secure the repayment of the said financial assistance, the Personal Guarantor of the Corporate Debtor (PG/Respondent), executed a Guarantee Agreement in favour of the Financial Creditor. Subsequently, due to financial distress, the Corporate Debtor sought restructuring of its debts and was accordingly referred to the Corporate Debt Restructuring (CDR) Cell, established under RBI guidelines.
3. The CDR Empowered Group approved a restructuring package, pursuant to which a Master Restructuring Agreement (MRA) dated 28.09.2012 was executed.
4. Under Article II and Schedule II of the MRA, the Corporate Debtor acknowledged its existing loan obligations to the Financial Creditor and its associate banks. The Personal Guarantor also executed Guarantee Agreements, reaffirming the liability towards the restructured financial assistance.
5. However, due to the failure of the Corporate Debtor to adhere to the terms of the Master Restructuring Agreement, Sanction Letters, and other financing documents, the account was classified as a Non-Performing Asset on 15.09.2014.
6. Pursuant to the said default the Financial Creditor and its associate bank (erstwhile State Bank of Patiala), initiated proceedings under the SARFAESI Act, 2002 and also filed O.A. No. 1332 of 2016 before the Debt Recovery Tribunal (DRT), Hyderabad, seeking recovery of ₹208.99 Crores
