# Santosh R. Shetty vs. Mr. Rajan Deshraj Agarwal, Committee Of Creditors Of Sristi Hospitality Private Limited, Consortium of Admas Industries Pvt. Ltd., Subh Ashish Exim Pvt. Ltd And Amit Jatia, Hardcastle Restaurants Pvt. Ltd.

> NCLAT judgment dated 2026-07-14. Citation: TCN-2026-NCLAT-00224. Santosh R. Shetty, the suspended Director and Promoter of Sristi Hospitality Private Limited…

- **Court:** NCLAT
- **Order date:** 14 Jul 2026
- **Citation:** TCN-2026-NCLAT-00224
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/santosh-r-shetty-vs-mr-rajan-deshraj-agarwal-committee-of-creditors-of-sristi-ho-dq2a1

## Summary

### Background

Santosh R. Shetty, the suspended Director and Promoter of Sristi Hospitality Private Limited (Corporate Debtor), filed two appeals against orders of the National Company Law Tribunal (NCLT), Mumbai Bench. The first appeal challenges the dismissal of his application (IA No. 2141/2024) for re-valuation of the Corporate Debtor's property and a declaration that the Corporate Insolvency Resolution Process (CIRP) was void. The second appeal challenges the NCLT's approval of a Resolution Plan (IA No. 3612/2023) for the Corporate Debtor. The Corporate Debtor, an MSME engaged in hospitality, had availed a term loan from Saraswat Co-operative Bank Ltd. (Financial Creditor) in 2017, secured by its prime asset, 'Liberty Lodge'. The loan account became a Non-Performing Asset (NPA)

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## Facts

Santosh R. Shetty is the suspended Director and Promoter of Sristi Hospitality Private Limited.

Two appeals were filed by Santosh R. Shetty under Section 61 of the Insolvency and Bankruptcy Code, 2016.

The appeals challenge NCLT orders dated 07.05.2024 (dismissing IA No. 2141/2022) and 12.07.2024 (approving IA No. 3612/2023).

Mr. Rajan Deshraj Agarwal is the Resolution Professional of Sristi Hospitality Pvt. Ltd. (Respondent No.1).

The Committee of Creditors (Respondent No. 2) comprises Saraswat Co-operative Bank Ltd. as the sole financial creditor.

Consortium of Admas Industries Pvt. Ltd., Subh Ashish Exim Pvt. Ltd and Amit Jatia, Hardcastle Restaurants Pvt. Ltd. (Respondent No.3) is the Successful Resolution Applicant.

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## Issues and analysis

### Issue 1: Whether the Appellant as the Suspended Director of the Corporate Debtor, constitutes a "person …

**Ratio:** A suspended director who is also a personal guarantor of the corporate debtor's debt has

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**Reasoning:** The Appellant's personal assets remain exposed to enforcement by the Financial Creditor.

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**Interpretation:** Section 61(1) of the Code, defining "person aggrieved," includes

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**Application:** The Appellant, Santosh R. Shetty, as a suspended director of the Corporate

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## Parties

- **Judges:** Mohammad Faiz…; Naresh Sa…
- **Appellants:** Santosh R.…
- **Respondents:** Sristi Hospitality…; Rajan Deshraj…; +5 more
- **Other parties:** Rani Sh…; Aditya S…; +5 more
- **Advocates:** NPS Ch…; Aarsheya…; +15 more

## Timeline

- **1997-12-02 — Agreement for…**: A long-standing agreement existed between the Corporate Debtor and Hardcastle Restaurants…
- **2003 — Corporate Debtor…**: The Corporate Debtor, Sristi Hospitality Private Limited, was incorporated under 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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