# State Bank of India vs. Mr. Narayan Pundlik Shenvi Prabhu

> NCLT judgment dated 2026-10-06. Citation: TCN-2026-NCLT-01143. State Bank of India, as a Financial Creditor, initiated bankruptcy proceedings against Mr.…

- **Court:** NCLT
- **Order date:** 6 Oct 2026
- **Citation:** TCN-2026-NCLT-01143
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/state-bank-of-india-vs-mr-narayan-pundlik-shenvi-prabhu-ip91v

## Summary

### Background

State Bank of India, as a Financial Creditor, initiated bankruptcy proceedings against Mr. Narayan Pundlik Shenvi Prabhu, a personal guarantor for M/s. Aditya Vidyut Appliance Limited (Corporate Debtor). The Corporate Debtor's accounts were declared Non-Performing Assets (NPA) due to default on credit facilities. Legal and demand notices were issued to both the Corporate Debtor and the Personal Guarantor. A Personal Insolvency Resolution Process (PIRP) was previously initiated against Mr. Prabhu, during which a Resolution Professional was appointed.

## Facts

State Bank of India (Petitioner/Applicant/Financial Creditor) filed an application to initiate bankruptcy process against Mr. Narayan Pundlik Shenvi Prabhu.

The application was filed under Section 123 of the IBC, 2016, read with Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019.

M/s. Aditya Vidyut Appliance Limited is the Corporate Debtor, engaged in transformer manufacturing and remanufacturing.

Mr. Narayan Pundlik Shenvi Prabhu is a Personal Guarantor of the Corporate Debtor.

The Corporate Debtor defaulted on credit facilities, leading to its accounts being declared Non-Performing Assets (NPA) on 16.10.2018.

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## Issues and analysis

### Issue 1: Whether the personal guarantor, Mr. Narayan Pundlik Shenvi Prabhu, should be declared bankrupt …

**Ratio:** The personal guarantor of a corporate debtor can be declared bankrupt if their repayment

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**Reasoning:** The Tribunal noted that the Petitioner (State Bank of India) initiated the bankruptcy

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**Interpretation:** The Tribunal interpreted Sections 114, 115(2), and 121 of the IBC, along with

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**Application:** Given the rejection of the repayment plan by the creditors and the subsequent

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## Parties

- **Judges:** Banwari Lal…; ASHISH…
- **Appellants:** State Bank of…
- **Respondents:** M/s. Aditya…; Narayan Pundlik…
- **Other parties:** Hasti Mal K…; Committee of…
- **Advocates:** Arusha…

## Timeline

- **2018-10-16 — NPA Decla…**: Accounts of the Corporate Debtor…
- **2019-06-10 — SARFAESI…**: Petitioner issued a Notice under Section 13(2) of the SARFAESI Act, 2002 to the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 123 — Application by creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-123)

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