# In the matter of Asha Basantilal Surana vs. State Bank of India & Ors.

> NCLAT judgment dated 2025-05-15. Citation: TCN-2025-NCLAT-00035. This case involves an appeal filed by Asha Basantilal Surana, a personal guarantor, against…

- **Court:** NCLAT
- **Order date:** 15 May 2025
- **Citation:** TCN-2025-NCLAT-00035
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/asha-basantilal-surana-vs-state-bank-of-india-ors-b6c80a31

## Summary

### Background

This case involves an appeal filed by Asha Basantilal Surana, a personal guarantor, against an order dated 04.12.2024 passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad, which rejected her application under Section 94 of the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority deemed the application premature, leading to the appeal before the National Company Law Appellate Tribunal (NCLAT). The principal borrower, Surana Metacast (India) Private Limited, had obtained credit facilities from State Bank of India and other financial creditors. The loan account was declared NPA on 01.05.2023. Notices under Section 13(2) of the SARFAESI Act, 2002 were issued to the principal borrower and the appellant, demanding repayment of

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## Facts

The principal borrower, Surana Metacast (India) Private Limited, obtained credit facilities from State Bank of India and other financial creditors. Asha Basantilal Surana executed a Deed of Personal Guarantee dated 2021-11-12 in relation to these credit facilities. The loan account was declared NPA on 2023-05-01. A notice under Section 13(2) of the SARFAESI Act, 2002, was issued on 2023-10-09 to both the principal borrower and Asha Basantilal Surana, demanding repayment of Rs.28,56,64,336.06/-. Respondent Nos. 2 and 3 also issued similar notices. State Bank of India obtained an order on 2024-04-06 under Section 14 of the SARFAESI Act for taking possession of secured assets. CIRP commenced against the principal borrower on 2024-08-05. State Bank of India issued a sale

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## Issues and analysis

### Issue 1: Whether the notice dated 09.10.2023 issued under Section 13(2) of the SARFAESI Act, 2002, addressed …

**Ratio:** The invocation of a personal guarantee depends on the terms of the Guarantee Agreement

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**Reasoning:** The NCLAT reasoned that the Adjudicating Authority's observation that the application was

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**Interpretation:** The interpretation of Section 13(2) notice and its effect on the personal

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**Application:** In this case, the Section 13(2) notice issued by the State Bank of India to

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Asha Basantilal…
- **Respondents:** Surana Metacast…; State Bank of…

## Timeline

- **2021-11-12 — Execution of Personal…**: Asha Basantilal Surana executed a Deed of Personal Guarantee in relation to credit…
- **2023-05-01 — Loan Account Declared…**: The loan account of Surana Metacast (India) Private Limited was declared Non-Performing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94 — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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