# In the matter of State Bank of India vs. Nakul Gupta

> NCLT judgment dated 2024-02-27. Citation: TCN-2024-NCLT-02385. State Bank of India filed a Company Petition (IB)-769(ND)/2022 against Mr. Nakul Gupta, the…

- **Court:** NCLT
- **Order date:** 27 Feb 2024
- **Citation:** TCN-2024-NCLT-02385
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-nakul-gupta-e634cb1a

## Summary

### Background

State Bank of India filed a Company Petition (IB)-769(ND)/2022 against Mr. Nakul Gupta, the Personal Guarantor, under Section 95 of the IBC, 2016, to initiate the Insolvency Resolution (IR) Process. The Adjudicating Authority appointed Mr. Rajesh Mittal as the Resolution Professional (RP) and directed him to file a report under Section 99 of the IBC, 2016. The RP submitted a report recommending the admission of the application. The RP's recommendation was based on the completeness of the application filed by the Applicant Bank and its satisfaction of the requirements under Section 95 of the Code.

## Facts

State Bank of India (SBI) filed a petition against Mr. Nakul Gupta, the personal guarantor of Technofab Engineering Limited, under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the insolvency resolution process. The Resolution Professional (RP), Mr. Rajesh Mittal, recommended the admission of the application, stating that the application was complete and satisfied the requirements of Section 95. The RP noted that Mr. Nakul Gupta had committed a default of more than INR 1,000. SBI claimed an amount of INR 69,48,96,010.33 in default as of 15.10.2022. Mr. Nakul Gupta argued that he resigned from the directorship of the company on 08.03.2018 and that the credit facilities were renewed on new terms without his consent, discharging him from his

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## Issues and analysis

### Issue 1: Whether the Personal Guarantor is discharged from his guarantee due to the renewal of credit …

**Ratio:** A variance in the terms of the contract between the principal debtor and the creditor,

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**Reasoning:** The Respondent argued that the credit facilities were renewed on new terms without his

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**Interpretation:** Section 133 of the Indian Contract Act, 1872, provides that any variance in the

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**Application:** In this case, the court found that the Respondent had signed the original

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** State Bank of…
- **Respondents:** Technofab…; Nakul G…
- **Advocates:** Bheem…; Joby P Va…; +3 more

## Timeline

- **2017-10-17 — Execution of Guarantee…**: The Guarantee Deed was executed on…
- **2018-03-08 — Resignation from…**: Mr. Nakul Gupta resigned from the…

## 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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