# Phoenix Arc Private Limited vs. Mr. Rajendra Himmatlal Salot & Mr. Hema Rajendra Salot

> NCLAT judgment dated 24 Mar 2026. Citation: TCN-2026-NCLAT-00059. Phoenix ARC Private Limited (Appellant), an Asset Reconstruction Company, was assigned the…

- **Court:** NCLAT
- **Order date:** 24 Mar 2026
- **Citation:** TCN-2026-NCLAT-00059
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/phoenix-arc-private-limited-vs-mr-rajendra-himmatlal-salot-mr-hema-rajendra-salo-ufkoi

## Summary

### Background

Phoenix ARC Private Limited (Appellant), an Asset Reconstruction Company, was assigned the loan account of M/s Raj Poly Products Limited (Corporate Debtor) from Janata Sahakari Co-operative Bank (Original Lender). Mr. Rajendra Himmatlal Salot and Ms. Hema Rajendra Salot (Respondents) are personal guarantors who executed Letters of Guarantee for the Corporate Debtor's cash credit facilities. The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 28.12.2017. Subsequently, a recall notice and a demand notice under Section 13(2) of the SARFAESI Act were issued on 10.04.2018 and 12.04.2018, respectively, to both the Corporate Debtor and the personal guarantors, demanding repayment of Rs. 15,37,21,490/-. The Appellant later issued demand notices

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## Facts

Phoenix ARC Private Limited (Appellant) is an Asset Reconstruction Company that was assigned the loan account of M/s Raj Poly Products Limited (Corporate Debtor) from Janata Sahakari Co-operative Bank (Original Lender).

Mr. Rajendra Himmatlal Salot and Mr. Hema Rajendra Salot (Respondents) are personal guarantors who executed Letters of Guarantee to secure the loan facilities granted to the Corporate Debtor.

On 03.12.2014, Mr. Rajendra Himmatlal Salot executed a Letter of Guarantee in favour of the Original Lender.

The Corporate Debtor's account was declared a Non-Performing Asset (NPA) on 28.12.2017.

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## Issues and analysis

### Issue 1: Whether the demand notice issued under Section 13(2) of the SARFAESI Act, 2002, to the Corporate …

**Ratio:** A notice issued under Section 13(2) of the SARFAESI Act can be treated as an invocation

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**Reasoning:** The Adjudicating Authority held that the Section 13(2) notice dated 12.04.2018, which was

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**Interpretation:** The NCLAT interpreted Section 13(2) of the SARFAESI Act, in conjunction with

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**Application:** In this specific case, the Section 13(2) notice dated 12.04.2018 was found to

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## Parties

- **Judges:** Mohd. Faiz Alam…; Arun Ba…
- **Appellants:** Phoenix ARC…
- **Respondents:** M/s Raj Poly…; Rajendra Himmatlal…; +1 more
- **Other parties:** Insolvency and…; Personal Gu…; +10 more

## Timeline

- **2013-09-27 — Original Lender…**: Original Lender sanctioned Term Loan/Cash Credit Facility of Rs. 10 Crores to Corporate…
- **2013-11-20 — Sanction Lett…**: Original Lender issued a sanction letter…

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