Case Details: Naseema Bano Personal Guarantor SRS Meditech Ltd. vs. State Bank of India – [2026] 183 taxmann.com 716 (NCLAT-New Delhi)
Judiciary and Counsel Details
- N. Seshasayee, Judicial Member & Arun Baroka, Technical Member
- Ms Kritika, Rajat K. Mittal & Ms Heena Khatun, Advs. for the Appellant.
- Harshit Gupta & Shaun Jomon, Advs. for the Respondent.
Facts of the Case
In the instant case, the appellants stood as personal guarantors to a loan advanced to the corporate debtor. The corporate debtor defaulted on the loan, and it was eventually classified as a Non-Performing Asset (NPA).
The financial creditor issued a notice under section 13(2) of the SARFAESI Act, and, pursuant to the same notice, it also invoked the personal guarantee furnished by the appellants. In the aforesaid circumstances, the appellants invoked section 94 of the IBC.
The Adjudicating Authority (NCLT) dismissed the petition filed by the appellants under section 94 of the IBC, on a solitary ground that the petition was filed only after the financial creditor had invoked the SARFAESI Act for the realisation of debt. Then, an appeal was made before the NCLAT against the order passed by the NCLT.
NCLAT Held
The NCLAT held that the dismissal of the Section 94 application solely on the ground that the financial creditor had initiated proceedings by issuing a notice under Section 13(2) of the SARFAESI Act was not legally sustainable.
Therefore, the matter was to be remanded back to the Adjudicating Authority for its consideration, other than that which formed the line of its reasoning in the impugned order.
List of Cases Reviewed
- Naseema Bano, In re [2025] 171 taxmann.com 158 (NCLT-Chd.)
- Syed Mazahir Askari, In re [2025] 171 taxmann.com 329 (NCLT-Chd.) (para 5) reversed.
- Getz Cables (P.) Ltd. v. State Bank of India [2024] 169 taxmann.com 609 (NCLAT- New Delhi) (para 4) followed
List of Cases Referred to
- Getz Cables (P.) Ltd. v. State Bank of India [2024] 169 taxmann.com 609 (NCLAT- New Delhi) (para 3).
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