# State Bank of India vs. Mangalagiri Textile Mills Private Limited

> NCLT judgment dated 2026-07-21. Citation: TCN-2026-NCLT-00638. State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against…

- **Court:** NCLT
- **Order date:** 21 Jul 2026
- **Citation:** TCN-2026-NCLT-00638
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-amaravati/state-bank-of-india-vs-mangalagiri-textile-mills-private-limited-bo7kf

## Summary

### Background

State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Mangalagiri Textile Mills Private Limited under Section 7 of the IBC. Mr. Immaneni Eswara Rao was appointed as the Interim Resolution Professional (IRP) and subsequently the Resolution Professional (RP). The Committee of Creditors (CoC), with SBI as its sole member, evaluated resolution plans. The only compliant plan, submitted by the suspended director Dr. Goli Nagasaina Rao, ultimately became non-responsive due to the failure to submit a Performance Bank Guarantee (PBG) despite multiple extensions. The Corporate Debtor has been non-functional and non-operational since December 2021.

## Facts

State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Mangalagiri Textile Mills Private Limited under Section 7 of the IBC, 2016.

The Adjudicating Authority admitted the Corporate Debtor into CIRP on 25.07.2024 and appointed Mr. Immaneni Eswara Rao as the Interim Resolution Professional (IRP).

The IRP published a public notice on 31.07.2024, inviting claims from creditors by 14.08.2024.

The Committee of Creditors (CoC) was constituted with State Bank of India (SBI) as the sole member, and its constitution was taken on record on 29.08.2024.

SBI's revised claim of Rs. 26,54,08,841/- was collated by the Resolution Professional (RP) on 12.09.2025.

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Mangalagiri Textile Mills Private …

**Ratio:** The Corporate Debtor is ordered to be liquidated under Section 33(2) of the IBC when the

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**Reasoning:** The CoC, after multiple extensions and deliberations, concluded that the resolution plan

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**Interpretation:** Section 33(2) of the IBC mandates liquidation if the Adjudicating Authority

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**Application:** Since the only compliant resolution plan failed to meet a crucial condition

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## Parties

- **Judges:** KISHORE VEMULAPALL…; UMESH KUMAR…
- **Appellants:** Vajrala Siv…; Immaneni Eswara…
- **Respondents:** Mangalagiri…; State Bank of…; +3 more
- **Other parties:** Goli Nagasa…; Amara…; +4 more
- **Advocates:** Prabha P…; G.P. Yash V…

## Timeline

- **2024-07-25 — CIRP Admission and IRP…**: Adjudicating Authority admitted the Corporate Debtor into Corporate Insolvency Resolution…
- **2024-07-31 — Public Notice for CIRP…**: The IRP published a public notice in newspapers, informing the commencement of the CIRP…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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