# In the matter of Subhash Aggarwal vs. State Bank of India and Anr.

> NCLAT judgment dated 2025-10-29. Citation: TCN-2025-NCLAT-00548. The appeal arises from an order dated 01.02.2024 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 29 Oct 2025
- **Citation:** TCN-2025-NCLAT-00548
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/subhash-aggarwal-vs-state-bank-of-india-and-anr-594b6ee7

## Summary

### Background

The appeal arises from an order dated 01.02.2024 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi, Bench-II) in I.A. No. 5300/ND/2022 in C.P.(IB) No. 491/ND/2022, allowing an application filed under Section 95 of the IBC by the Respondent Bank for initiating insolvency resolution of the Appellant-Personal Guarantor.

## Facts

Subhash Aggarwal joined J.V. Strips Ltd. as an Executive Director on 01.09.2008.

Aggarwal signed a personal guarantee on 25.08.2009 in favor of State Bank of India for a credit facility of Rs 41.25 Cr. extended to J.V. Strips Ltd., standing as a guarantor to the tune of Rs 3.84 Cr.

Aggarwal purportedly resigned from the Directorship of J.V. Strips Ltd. on 13.02.2012, with the resignation letter allegedly uploaded on the ROC portal.

The Respondent Bank renewed the credit facility multiple times after Aggarwal's resignation.

The account of J.V. Strips Ltd. was declared NPA on 25.07.2018.

Aggarwal informed the Respondent Bank on 29.10.2018 that he had resigned and had not signed any documents post-resignation.

…

## Issues and analysis

### Issue 1: Whether the Deed of Guarantee of 2009 was a …

**Ratio:** The Deed of Guarantee of 2009 was a continuing guarantee which was “irrevocable” in

…

**Reasoning:** Clauses 8 and 11 of the Guarantee Deed clearly indicate its continuing nature. Clause 14

…

**Interpretation:** A continuing guarantee remains operational even for subsequent transactions,

…

**Application:** The Appellant cannot argue that he was not bound by the transactions emanating

…

## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** SUBHASH AG…
- **Respondents:** JV Strips…; State Bank of…; +1 more
- **Advocates:** Abhijeet…; Arindam…; +3 more

## Timeline

- **2008-09-01 — Appointm…**: Subhash Aggarwal joined J.V. Strips…
- **2009-08-25 — Guarantee…**: Aggarwal signed a personal guarantee…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/subhash-aggarwal-vs-state-bank-of-india-and-anr-594b6ee7