# In the matter of State Bank of India vs. Rakesh Hariram Agarwal and Anr.

> NCLAT judgment dated 2025-09-23. Citation: TCN-2025-NCLAT-00504. The appeals challenge orders of the Adjudicating Authority (NCLT – IV, Mumbai) dated…

- **Court:** NCLAT
- **Order date:** 23 Sept 2025
- **Citation:** TCN-2025-NCLAT-00504
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/state-bank-of-india-vs-rakesh-hariram-agarwal-and-anr-ea43e184

## Summary

### Background

The appeals challenge orders of the Adjudicating Authority (NCLT – IV, Mumbai) dated 09.12.2024 in C.P (IB) 15 of 2023 and C.P.(IB) 62 of 2023, dismissing petitions filed by the appellant/Financial Creditor under Sec.95 IBC for initiating insolvency proceedings against two personal guarantors of the principal borrower on the ground of limitation.

## Facts

The appellant is a Nationalised Bank.

On 23.09.2009, the appellant advanced a loan of Rs.10.50 Crores to Asis Global Limited, for which the respondents gave personal guarantees.

The loan limit was subsequently enhanced to Rs. 18.0 crores and then to Rs. 20.0 crores.

The principal borrower did not repay the loan, and the loan was notified as NPA.

On 31.12.2013, the appellant issued a notice under Sec 13 (2) of SARFAESI Act, 2002.

On 09.08.2017, the borrower and the personal guarantor made an OTS proposal, which was accepted on 31.10.2017.

On 22.03.2018, the DRT issued a recovery certificate in O.A 1819 of 2016.

The borrower paid Rs. 2.50 crores in five installments after the acceptance of the OTS.

…

## Issues and analysis

### Issue 1: Whether the date of default as mentioned in Part III of the petition under Sec.95 IBC is the sole …

**Ratio:** The date of default in Part III of the petition is not the sole criterion for computing

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**Reasoning:** The tribunal can act on the date for commencement of limitation as could be gathered from

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**Interpretation:** The date of default is only one of the facts constituting the cause of action,

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**Application:** The tribunal considered the acknowledgement of debt by the principal borrower

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## Parties

- **Judges:** N. Sesha…; Arun Ba…
- **Appellants:** State Bank of…
- **Respondents:** Asis Global…; Rakesh Hariram…; +2 more
- **Advocates:** HARSHIT…; Prafful…; +2 more

## Timeline

- **2009-09-23 — Loan Adv…**: State Bank of India advanced a loan of…
- **2013-12-31 — SARFAESI…**: Appellant issued a notice under…

## 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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