NATIONAL COMPANY LAW TRIBUNAL INDORE BENCH COURT NO. 1 ITEM No.205 C.P.(IB)/22(MP)2022 Proceedings under Section 95 IBC IN THE MATTER OF:

State Bank of India ........Applicant V/s Ramesh Chand Garg ........Respondent (Personal Guarantor)

Coram:

Mr. Brajendra Mani Tripathi, Hon’ble Member(J)

Mr. Man Mohan Gupta, Hon’ble Member(T)

ORDER

Delivered on 07/01/2026 The case is fixed for pronouncement of the order. The order is pronounced in open Court vide separate sheet.

Sd/- Sd/-

MAN MOHAN GUPTA BRAJENDRA MANI TRIPATHI MEMBER (TECHNICAL) MEMBER (JUDICIAL)

Neeraj THE NATIONAL COMPANY LAW TRIBUNAL BENCH AT INDORE CP(IB) No. 22 of 2022 [Under Section 95 read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantor to Corporate Debtor) Rules, 2019]

State Bank of India Having its registered office at:

Stressed Asset Management Branch-II

11^th Floor, Jawahar Vyapar Bhawan, STC Building, Janpath 1, Tolstoy Marg, New Delhi – 110001 … Financial Creditor Versus Mr. Ramesh Chand Garg Personal Guarantor to K. S. Oil Limited Having address at:

K.S. Complex, Behind Mela Ground, Morena (M.P.) - 476001 … Personal Guarantor C O R A M:

HON’BLE SH. BRAJENDRA MANI TRIPATHI, MEMBER (J)

HON’BLE SH. MAN MOHAN GUPTA, MEMBER (T)

Order Pronounced on 07.01.2026 Appearance:

For the Applicant : Ms. Fatima Kachwalla, Adv. For the RP : Mr. Milan Singh Negi, Adv.

For the Respondent : Mr. Rohit Dubey, Adv.

J U D G E M E N T

1. The Present Application is filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 (Herein referred to as “IBC, 2016”) r/w. Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantor to Corporate debtor) Rules, 2019 by State Bank of India (Financial Creditor) for the purpose of initiating Personal Insolvency Resolution Process against Mr. Ramesh Chand Garg, the Personal Guarantor of the Corporate Debtor namely K.S. Oil Limited for default of an amount of Rs. 2345,54,92,039.79/-.

2. The Applicant/Financial Creditor herein submits that at the request of the Corporate Debtor, the Applicant/Financial Creditor had sanctioned various credit facilities along with multiple banks and financial institutions to the Corporate Debtor in 2007. Thereafter, the Respondent failed to repay the debt and on 14.03.2012, a Master Restructuring Agreement was executed between the Borrower, SBI (as monitoring institution) and SBICAP Trustee Company Limited as a security Trustee to restructure the debt as per the table set out in Schedule II of the MRA. According to one of the conditions for reconstructing in MRA included Mr. Ramesh Chand Garg (Personal Guarantor) who provided a personal guarantee in favour of SBICAP, the security trustee, on 14.03.2012. 3. The Applicant submits that loan account of the corporate debtor has come to be declared as a Non-Performing Asset (NPA) on 30.04.2013.

4. Thereafter, the MRA was amended due to certain enhancement in facilities made by one of the lenders and accordingly, the personal guarantee dated

14.03.2012 was also amended on 22.05.2013.

5. Thereafter, on 04.03.2014, the Applicant issued a notice under Section 13(2) of the SARFAESI Act upon the principal borrower as well as Guarantors of Corporate Debtor (including the Personal Guarantor herein) seeking forthwith repayment of the outstanding amount along with the interest and accrued charges. 6. It was submitted that the Borrower in its Annual Report for the F.Y. 2015- 16 dated 14.10.2016 acknowledged its outstanding dues to the tune of Rs. 2782 crores and the Balance sheet for the F.Y. 2016-17 acknowleged dues towards SBI to be of Rs. 444.94 crores (as long term borrowing) and Rs. 420.31 crores (as long term borrowings).

7. On 3.10.2017, the borrower’s Independent Auditor have also confirmed that it has defaulted in repayment of its debt obligations to bank and financial institutions.

8. The Applicant further submits that, a