# Nakul Gupta vs. State Bank of India & Anr.

> NCLAT judgment dated 2026-07-06. Citation: TCN-2026-NCLAT-00237. This appeal challenges the NCLT's order dated 27.02.2024, which initiated personal insolvency…

- **Court:** NCLAT
- **Order date:** 6 Jul 2026
- **Citation:** TCN-2026-NCLAT-00237
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/nakul-gupta-vs-state-bank-of-india-anr-z4xod

## Summary

### Background

This appeal challenges the NCLT's order dated 27.02.2024, which initiated personal insolvency proceedings against Nakul Gupta, an erstwhile director of Technofab Engineering Limited (Corporate Debtor - CD). The proceedings were based on an application by State Bank of India (SBI) following the CD's default on credit facilities. Nakul Gupta had provided a personal guarantee for the CD's loans.

## Facts

Nakul Gupta, the Appellant, was an erstwhile Director of Technofab Engineering Limited (TEL), the Corporate Debtor.

State Bank of India (SBI), Respondent No.1, initiated personal insolvency proceedings against Nakul Gupta.

Mr. Rajesh Mittal, Respondent No.2, is the Resolution Professional in the Corporate Debtor's insolvency proceedings.

SBI had been granting loan/credit facilities to TEL since 17.04.2009.

On 11.10.2017, a total credit facility of ₹907 Crore was sanctioned to TEL by a consortium of banks led by Bank of India (BOI), with SBI being a member. SBI's share was ₹117 Crore.

On 17.10.2017, Nakul Gupta, along with other directors, executed a Working Capital Consortium Agreement, Joint Deed of Hypothecation, and Deeds of Guarantee in favor of the BOI consortium.

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## Issues and analysis

### Issue 1: Whether the Appellant's personal guarantee stood revoked upon his resignation as a director of the …

**Ratio:** Resignation from directorship does not automatically revoke a continuing personal

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**Reasoning:** The Deed of Guarantee dated 17.10.2017 explicitly stated that the guarantee was

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**Interpretation:** A personal guarantee creates an independent contractual obligation. Its

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**Application:** The NCLAT held that the Appellant's resignation on 08.03.2018 did not discharge

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## Parties

- **Judges:** N. Sesha…; Arun Ba…
- **Appellants:** Nakul G…
- **Respondents:** Technofab…; State Bank of…; +1 more
- **Other parties:** Arjun G…; Avinash Chander…
- **Advocates:** Gaurav…; Abhirup Da…; +7 more

## Timeline

- **2009-04-17 — Credit Facilities…**: State Bank of India (SBI) began granting various loan/credit facilities to Technofab…
- **2017-10-11 — Consortium S…**: Credit facilities for a total amount of ₹907 Crore were sanctioned in favor of TEL by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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