NCLT Ahmedabad Admits Section 95 Petition Against Sonali Exim Guarantor Over Siemens ₹5 Cr Default

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 8 May admitted an application under Section 95 of the Insolvency and Bankruptcy Code, 2016 filed by Siemens Financial Services Pvt. Ltd. against Deepak Agarwal, personal guarantor to Sonali Exim Pvt. Ltd.

Judicial Member Chitra Hankare and Technical Member Dr V.G. Venkata Chalapathy initiated the personal insolvency resolution process.

Siemens Financial Services sanctioned a term loan facility to Sonali Exim Pvt. Ltd. on 31 January 2024. The parties executed a Loan-cum-Hypothecation-cum-Guarantee Agreement on 6 February 2024, under which Deepak Agarwal, Managing Director of the company, furnished a personal guarantee.

The account slipped into default when the instalment due on 7 June 2024 remained unpaid in full. Siemens Financial Services invoked the acceleration and cross-default clauses and recalled all facilities through a notice dated 1 August 2024. The outstanding liability stood at Rs 5,00,02,974 (Five Crore Two Lakh Two Thousand Nine Hundred Seventy-Four) as on 31 July 2024.

Invoking Rule 7(1) of the Insolvency and Bankruptcy Rules for Personal Guarantors, Siemens issued a Form B demand notice on 19 August 2024 calling upon Agarwal to clear the dues. He failed to make any payment.

On 2 September 2025, the Tribunal appointed Mangesh Vitthal Kekre as Resolution Professional and directed him to submit a report under Section 99. The Resolution Professional filed his report on 6 October 2025 recommending admission under Section 100, noting continuing default, absence of repayment, and non-cooperation by the guarantor despite repeated notices.

Agarwal did not file a reply despite multiple opportunities. The Tribunal closed his right to reply on 20 April 2026, while granting liberty to file written submissions, which he did not exercise.

The Bench found that the application was within limitation and supported by documentary evidence. It also recorded that the personal guarantor neither responded to the Resolution Professional's queries nor appeared before it or filed any reply.

The Tribunal admitted the application and commenced the personal insolvency resolution process against Deepak Agarwal. It imposed a moratorium for 180 days, staying all proceedings in respect of the debt and restraining creditors from initiating or continuing actions, and prohibited the guarantor from transferring or alienating his assets during the moratorium period.

It directed the Resolution Professional to publish notice within seven days inviting claims from creditors, with claims to be registered within 21 days.

Accordingly the NCLT allowed the application.

For Applicants: Advocate Vishal Raval