# RENU LALIT AGARWAL vs. SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA & ANR.

> NCLAT judgment dated 2026-08-21. Citation: TCN-2026-NCLAT-00260. Renu Lalit Agarwal, the Suspended Director of AS Infracon Pvt. Ltd. (Corporate Debtor), filed…

- **Court:** NCLAT
- **Order date:** 21 Aug 2026
- **Citation:** TCN-2026-NCLAT-00260
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/renu-lalit-agarwal-vs-small-industries-development-bank-of-india-anr-bwki8

## Summary

### Background

Renu Lalit Agarwal, the Suspended Director of AS Infracon Pvt. Ltd. (Corporate Debtor), filed an appeal against an NCLT order dated 30.10.2024 that admitted a Section 7 IBC application by Small Industries Development Bank of India (SIDBI). SIDBI had sanctioned a loan to Kosas Exports Ltd. (Principal Borrower), which was guaranteed by AS Infracon Pvt. Ltd. The loan became a Non-Performing Asset (NPA), and SIDBI invoked the guarantee. The Appellant contended that the guarantee invocation notice and the Section 7 petition were not properly served, leading to ex-parte proceedings and a violation of natural justice. She also argued that the proceedings were time-barred and that the Corporate Debtor's registered office had been non-functional for over five years, a fact

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## Facts

Renu Lalit Agarwal is the Suspended Director of AS Infracon Pvt. Ltd. (Corporate Debtor).

AS Infracon Pvt. Ltd. was incorporated on 17.08.1998.

No business activities have been carried on from the registered office of the Corporate Debtor for more than five years.

Small Industries Development Bank of India (SIDBI) sanctioned financial assistance of Rs. 7,00,00,000/- to Kosas Exports Ltd. (Principal Borrower) vide Sanction Letter dated 24.02.2014.

A Loan Agreement was executed between SIDBI and Kosas Exports Ltd. on 26.02.2014.

The Corporate Debtor executed an unconditional and irrevocable Deed of Guarantee on 26.02.2014, securing the loan advanced to the Borrower.

The entire loan amount of Rs. 7 Crores was disbursed to the Borrower.

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## Issues and analysis

### Issue 1: Whether the impugned order is vitiated by …

**Ratio:** The Adjudicating Authority made sustained and repeated efforts to effect service, and the

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**Reasoning:** The Adjudicating Authority made efforts for over seven months (07.02.2024 to 18.09.2024)

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**Interpretation:** Principles of natural justice require reasonable opportunity for hearing.

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**Application:** The NCLAT found no infirmity in the Adjudicating Authority's process,

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## Parties

- **Judges:** Naresh Sa…; Mohammad Faiz…
- **Appellants:** Renu Lalit…
- **Respondents:** AS Infracon Pvt.…; Small Industries…; +1 more
- **Advocates:** Arpit Si…; Amit D…; +5 more

## Timeline

- **2014-02-24 — Loan Sanc…**: SIDBI sanctioned financial assistance of Rs. 7,00,00,000/- to Kosas Exports Ltd. vide…
- **2014-02-26 — Loan Agreement &…**: A Loan Agreement was executed between SIDBI and Kosas Exports Ltd. On the same date, the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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