# In the matter of Mamtaben Hareshbhai Bhalodiya vs. Small Industries Development of India

> NCLT judgment dated 2025-10-06. Citation: TCN-2025-NCLT-01517. The case involves an application under Section 94 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 6 Oct 2025
- **Citation:** TCN-2025-NCLT-01517
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/mamtaben-hareshbhai-bhalodiya-vs-small-industries-development-of-india-0fd0771e

## Summary

### Background

The case involves an application under Section 94 of the Insolvency and Bankruptcy Code, 2016, filed by Mamtaben Hareshbhai Bhalodiya, a personal guarantor to Aricon Papers Private Limited, for initiation of the Insolvency Resolution Process. The application is related to credit facilities provided by Small Industries Development Bank of India (SIDBI).

## Facts

Mamtaben Hareshbhai Bhalodiya filed an application under Section 94 of the IBC as a personal guarantor to Aricon Papers Private Limited.

The application was filed in relation to credit facilities extended by Small Industries Development Bank of India (SIDBI).

The IRP, Mr. Rahul Shah, filed a report recommending the admission of the application.

SIDBI opposed the admission, citing procedural defects and arguing that the application was filed to stall SARFAESI proceedings.

The Adjudicating Authority admitted the application under Section 100 of the IBC, initiating the insolvency resolution process.

A moratorium was imposed under Section 101 of the IBC.

## Issues and analysis

### Issue 1: Whether the application under Section 94 of the IBC is maintainable despite the ongoing SARFAESI …

**Ratio:** The right of a personal guarantor under Section 94 of the Insolvency and Bankruptcy Code,

…

**Reasoning:** The Adjudicating Authority considered the intent for resolution rather than prolonged

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**Interpretation:** The initiation of SARFAESI proceedings does not automatically bar an

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**Application:** The Adjudicating Authority found that the application was filed with genuine

…

## Parties

- **Judges:** SHAMMI…; SANJEEV S…
- **Appellants:** Mamtaben Hareshbha…; Rahul N…
- **Respondents:** Aricon Papers…; Small Industries…
- **Other parties:** Rahul…
- **Advocates:** Arjun Pad…; Sumit P…; +1 more

## Timeline

- **2025-06-12 — Filing of Company…**: The present Company Petition was filed by the Personal Guarantor under Section 94 of the…
- **2025-06-18 — Appointment of…**: The Authority appointed Mr. Rahul…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94 — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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