# In the matter of Anil Syal vs. Ajay Gupta & Anr.

> NCLT judgment dated 2025-01-29. Citation: TCN-2025-NCLT-00563. Mr. Anil Syal, the Debtor/Personal Guarantor, filed an application under Section 138(1)(a) of…

- **Court:** NCLT
- **Order date:** 29 Jan 2025
- **Citation:** TCN-2025-NCLT-00563
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/anil-syal-vs-ajay-gupta-anr-8438e3d5

## Summary

### Background

Mr. Anil Syal, the Debtor/Personal Guarantor, filed an application under Section 138(1)(a) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016, seeking discharge from the bankruptcy process. The Adjudicating Authority initiated an interim moratorium period and appointed a Resolution Professional. The application was admitted, and subsequently, Mr. Ajay Gupta was appointed as the Bankruptcy Trustee. A public announcement was made to invite participation in the auction of the applicant's property. The Bankruptcy Trustee presented a final report, and the Union Bank of India filed an application seeking the setting aside of an undervalued sale. The Hon'ble NCLAT granted liberty to the applicant to make an

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## Facts

Mr. Anil Syal, a Debtor/Personal Guarantor, underwent a bankruptcy process under the IBC, 2016, as a personal guarantor to a corporate debtor. He applied for discharge under Section 138(1)(a) of the IBC, arguing that the one-year bankruptcy period had lapsed. The Bankruptcy Trustee, Mr. Ajay Gupta, initially filed an application for discharge under Section 138(1)(b) but withdrew it. The Union Bank of India, a creditor, objected to the discharge, arguing that it would hinder the sale of the mortgaged property, partly owned by the applicant's wife. The NCLAT granted Mr. Syal liberty to apply to the Adjudicating Authority for discharge. The Bankruptcy Trustee conducted an e-auction of the applicant's property, which was later set aside due to undervaluation. The

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## Issues and analysis

### Issue 1: Whether the application filed by Mr. Anil Syal seeking discharge from the bankruptcy process is …

**Ratio:** Section 138(1) of the IBC stipulates that the Bankruptcy Trustee should apply for the

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**Reasoning:** The Adjudicating Authority emphasized that the procedural framework outlined in Section

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**Interpretation:** Section 138(1) is interpreted as assigning the duty to apply for discharge

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**Application:** In this case, Mr. Syal, the bankrupt, filed the application for discharge

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** Anil…
- **Respondents:** Ajay G…

## Timeline

- **2020-09-18 — Initiation of Interim…**: The Adjudicating Authority initiated the interim moratorium period in terms of Section 96…
- **2022-10-28 — Admission of Ap…**: The Adjudicating Authority admitted the application, IB-589(PB)/2020 filed by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 138(1) — Discharge order](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-138)

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