The personal guarantee must be established beyond doubt for the petition to be admitted; insufficient cooperation led to dismissal.

Under Section 95 of the Insolvency & Bankruptcy Code, 2016 r/w Rule 7(2) of the Insolvency and Bankruptcy (Application to the Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate

Debtors), Rules, 2019.

In the matter of

ABV Electronic

...Petitioner/Financial

Creditor

Versus

Mrs. Shabnam Sheikh

…Respondent/Personal

Guarantor

Order pronounced on 26.09.2025

Coram:

Prabhat Kumar Sushil Mahadeorao Kochey

Member (Technical) Member (Judicial)

Appearances:

For the Applicant : Mr. Yahya Batatawala, Ld.

Counsel

ORDER

Brief facts:

1. The present petition is filed u/s. 95 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC, 2016/Code") r/w Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 by ABV Electronic (“hereinafter referred to as Petitioner/Financial Creditor”) for initiating insolvency process against Mrs. Shabnam Sheikh (“hereinafter referred to as Personal Guarantor/Respondent”) for outstanding debt of INR 5,97,31,577/- (Rupees Five Crore Ninety Seven Lac Thirty One Thousand Five Hundred Seventy Seven only) as on 31.03.2024. The Date of Default, as specified in Part-III of the present petition is 01.05.2019.

2. The Petitioner is a proprietorship firm, represented by Mrs. Ajita Balkrishna Virkar, also known as Gargi Niranjan Karmarkar having PAN: ALAPV9923C and its Registered Office at Ground Floor, B/001, Vrajdham, Rambaug Lane, Borivali West, Mumbai, Maharashtra 400092.

3. The Personal Guarantor, viz. Mrs. Shabnam Sheikh has her residential address at Flat No. 302, 3rd Floor, Dheeraj Gaurav Heights - 3, Off New Link Road, Opp. Infiniti Mall, Adarsh Nagar, Andheri West, Mumbai, Maharashtra — 400053. She was the Personal Guarantor for M/s. Polaris Indcomm Private Limited (hereinafter referred to as the “Corporate Debtor”) and she stood as Personal Guarantor for the credit facilities extended to the Corporate Debtor.

4. The Corporate Debtor bearing CIN U52l00MH2012PTC232385 incorporated on 19.06.2012 under the Companies Act, 1956 has its registered office at Unit No.1003, Cello Triumph, I.B.Patel Road, Opp. Laghu Udyog, Goregao, N (East), Mumbai, Maharashtra, India- 400063. Its authorized and paid up share capital is Rs. 1,00,000/-. It was involved in the business of non-

specialized retail trade in stores in India.

Submissions of the Applicant:

5. The Corporate Debtor had availed unsecured loan facility for amount of Rs. 1,95,00,000/- (Rupees One Crore Ninety Five Lacs only) from the Financial Creditor through a Loan Agreement executed on 01^st May, 2018 between the Corporate Debtor and the Financial Creditor.

6. According to the Loan Agreement the said debt was repayable within a period of 12 months. i.e. 3^rd April, 2019 alongwith 21%

interest thereon.

7. In order to secure the said loan, on the same date a Personal Guarantee Deed was also executed in favor of the Financial Creditor by the Personal Guarantor herein and Late Mr. Azizul Hakeem Sheikh.

8. The Financial Creditor disbursed around Rs. 1,93,07,740/-

(Rupees One Crore Ninety Three Lac Seven Thousand Seven Hundred Forty only) in several tranches against sanctioned loan facility through aforesaid Loan Agreement.

9. However, the Corporate Debtor as well as the guarantor failed to repay the outstanding dues within the time limit set-out in the loan agreement. Hence, the Financial Creditor issued a demand notice dated 09^th May 2019 and the Corporate Debtor even after admitting its liability once again failed to pay the outstanding dues. The Financial Creditor issued several other demand notices inter alia calling upon the Corporate Debtor to repay the outstanding dues and the Corporate Debtor as well as the Respondent herein.

10. The Financial Creditor issued last demand letter on 13^th February, 2024 and directed the Corporate Debtor and the Respondent to release the payment and clear it in full along with interest. But t