NATIONAL COMPANY LAW TRIBUNAL COURT NO. 1 ITEM No.201 C.P.(IB)/24(MP)2021 Order under Section 95 IBC IN THE MATTER OF:

State Bank of India ........Applicant V/s Sumit Rajpal ........Respondent Coram:

Hon’ble Shri Brajendra Mani Tripathi, Member (J)

Hon’ble Shri Man Mohan Gupta Member (T)

PRONOUCMENT ORDER Delivered on 23/02/2026 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)

BEFORE THE NATIONAL COMPANY LAW TRIBUNAL CP/IB/24/2021 [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]

In the matter of:

State Bank of India Stressed Assets Recovery Branch, 5, Y.N. Road, 1st floor SBI Zonal Office Indore, Madhya Pradesh - 452003 Email: sbi.10007@sbi.co.in ...Applicant Versus Mr. Sumit Rajpal (Personal Guarantor)

House No. 9, Triveni Colony, …Respondent Indore, Madhya Pradesh – 452001 Coram:

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

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

Order Pronounced on 23.02.2026 Appearance:

For the Applicant: Mr. Rohit Dubey, Ld. Advocate For the Resolution Professional: Ms. Teena Saraswat Pandey For the Respondent: Ms. Soumya Dharwa, Ld. Advocate

JUDGEMENT

1. The present application has been filed on 19.07.2021 under Section

95 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “Code”) read with 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 State Bank of India (hereinafter referred to as “Financial Creditor”/“Applicant”) for the purpose of initiating insolvency resolution process against Mr. Sumit Rajpal (hereinafter referred to as “Respondent/Personal Guarantor”), Personal Guarantor of the M/s Rajpal Autolink Private Limited (hereinafter referred to as “Corporate Debtor”) having Corporate Identification Number (CIN): U50100MP2011PTC026888) for default of an amount of Rs. 10,19,27,157/- (Rupees Ten Crores Nineteen Lakhs Twenty-Seven Thousand One Hundred Fifty-Seven Only).

Submissions by the Applicant/Financial Creditor

2. The averments made by the Financial Creditor in its Application and argued by the learned counsel for the Applicant are summarized hereunder:

I. The Financial Creditor submitted that the Corporate debtor in its meeting of board of directors on 13.02.2018, resolved to avail the cash credit limit of Rs. 10,00,00,000/- (Rupees Ten Crores Only) and Line of Credit of Rs. 2,00,00,000/- (Rupees Two Crores Only) aggregating to Rs. 12,00,00,000/- (Rupees Twelve Crores Only). The Financial Creditor agreed to sanction the aggregate credit facilities for which requisite documents were executed by the Corporate Debtor through its Directors and other individual as guarantors in order to secure the repayment of credit facilities on 17.02.2018. The Applicant Bank agreed to enhance credit facilities to Rs. 14,00,00,000/- (Rupees Fourteen Crores Only) after receiving Letter of arrangement for which requisite documents were executed by the Corporate Debtor through its Directors as guarantors in order to secure the repayment of credit facilities on 15.02.2019. On account of financial indiscipline, the account of the Corporate Debtor was classified as Non-Performing Asset (hereinafter referred to as “NPA”) on 25.02.2020 II. Subsequently, the Financial Creditor initiated recovery proceedings by filing an Original Application (O.A. no. 1063/2020) under Section 19(1) of the RDDBFI Act, 1993, before the Debts Recovery Tribunal (DRT), Jabalpur, which remains pending for adjudication. Furthermore, the Financial Creditor also issued a statutory Demand Notice in Form B on 06.08.2020 to the Respondent and other individual guarantors, demanding the credit facilities. It is also recorded that t