IN THE NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCH COURT III Under Section 95 r/w Section 100 of the Insolvency and Bankruptcy Code, 2016 State Bank of India Through its Authorized Representative :

Mr. Vikash Kumar Having its corporate centre at:

State Bank of India Bhawan, Mumbai.

And one of its branches at:

Stressed Assets Management Branch II, Raheja Chambers, B Wing, Ground Floor, Free Press Journal Marg, Mumbai 400023 … Financial Creditor/ Petitioner Vs.

Mr. Sanjeev Arora Personal Guarantor of M/s. Paramount Wheels Private Limited Having address at:

302, Mangal Nevatia, Sarojini Naidu Road, Santacruz (W), Mumbai 200054 Having Business address at: A1/ A&B, Velvin Centre, Hatkesh Udyog Nagar, Mira- Bhayander Road, Thane 40110 … Personal Guarantor/ Respondent Order pronounced on: 25.02.2026 Coram:

SMT. LAKSHMI GURUNG, MEMBER (JUDICIAL)

SHRI. HARIHARAN NEELAKANTA IYER, MEMBER (TECHNICAL)

Appearances:

For the Petitioner: Adv Haris A Khan (VC) i/b Adv Ajinkya Kurdukar For the Respondent: Adv Harsh Moorjani (VC), Adv Vignesh Iyer (VC)

i/b Jayakar and Partners Per: Smt. Lakshmi Gurung, Member (Judicial

ORDER

1. The Company Petition No. 826 of 2021 was filed by State Bank of India (‘Financial Creditor’) under section 95 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred as ‘Code’) seeking to initiate Insolvency Resolution Process against Mr. Sanjeev Arora (‘Personal Guarantor’ ) being the Personal Guarantor to M/s. Paramount Wheels Private Limited (‘Corporate Debtor’) having registered office at Bhanji Udyog Nagar, Next То Аjit Рalace Hotel, Penkar Pada, Opp Golden Chemical, Mira Road(E) Thane - 401104.

2. The Financial Creditor had extended loan facility to the Corporate Debtor which was renewed from time to time, latest being Supplemental Agreement of Loan cum Hypothecation dated 22.02.2018 for Rs.

26,50,00,000/- (Rupees Twenty-Six Crores Fifty Lakhs).

3. To secure the above loan the Personal Guarantor had executed his personal guarantee for Rs. 26,50,00,000/-vide Guarantee Agreement dated 22.02.2018 in favour of the financial creditor. The said guarantee agreement dated 22.02.2018 is annexed to the petition as Exhibit – E (Colly).

4. Shri Krishna Enterprises initiated steps against the Corporate Debtor by filing an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 in CP (IB) No. 1328/2019, in which the corporate debtor was admitted to corporate insolvency resolution process (CIRP) vide order dated 29.05.2019.

5. It is submitted that the Financial Creditor issued Demand Notice, in Form B dated 20.05.2021 to the Personal Guarantor under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process of Personal Guarantors to Corporate Debtors) Rule 2019, for payment of amount of debt in default of Rs. 16.30 Crores as on 11.05.2020. The said demand notice dated

20.05.2021 is annexed to the petition as Exhibit E.

6. Thereafter the present petition was filed on 21.08.2021 by the Financial Creditor under section 95 of the Code. As per Part III of the Petition the amount of default is Rs. 19,67,34,118.81/- as on 11.05.2021 and the date of default is mentioned as 27.12.2018.

7. This Tribunal vide order dated 15.02.2022 appointed Mr. Rakesh Maganlal Nathwani as the Resolution Professional (RP), who submitted his Report dated 17.03.2022.

Report of Resolution Professional

8. The RP has filed his Report dated 17.03.2022 under section 99 of the Code, in I.A.1650/2022 which was taken on record and was disposed of vide order dated 10.10.2022. Some of the relevant excerpts from RP’s report are:

“17. ……..In view of the same, the Resolution Professional, in accordance with Section 95 of the Code, provides his findings as under:

a. In accordance with Section 95 (4) (a) of the Code, the Application is required to be accompanied with details and documents relating to the debts owned by the debtor to the creditor(s) who has submitted the Application for Insolvency Resolution Process as