# In the matter of State Bank of India vs. Nihar Parikh

> NCLT judgment dated 2025-11-04. Citation: TCN-2025-NCLT-01688. State Bank of India (Financial Creditor/Applicant) filed an application under Section 95 of the…

- **Court:** NCLT
- **Order date:** 4 Nov 2025
- **Citation:** TCN-2025-NCLT-01688
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/state-bank-of-india-vs-nihar-parikh-bdaf3d26

## Summary

### Background

State Bank of India (Financial Creditor/Applicant) filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, to initiate insolvency resolution process against Mr. Nihar Nitin Parikh (Personal Guarantor/Respondent).

## Facts

State Bank of India granted credit facilities to Shrenuj and Company Limited (Corporate Debtor) amounting to ₹133.78 Crore.

Nihar Parikh, being a Director of the Corporate Debtor at the relevant time, furnished a joint Deed of Guarantee dated 30.09.2013.

The Corporate Debtor defaulted on repayment, leading the Financial Creditor to recall the credit facilities and invoke the personal guarantees vide letters dated 17.02.2017.

The Financial Creditor initiated recovery proceedings before DRT-III Mumbai Bench on 30.05.2017.

CIRP was initiated against the Corporate Debtor, and the Tribunal ordered liquidation on 12.07.2021.

A Demand Notice in Form B dated 25.03.2021 was served on the Personal Guarantor, demanding payment of ₹139.82 Crores.

…

## Issues and analysis

### Issue 1: Whether the application …

**Ratio:** The application is not

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**Reasoning:** Partial payments made by the Corporate Debtor constitute an acknowledgement of debt,

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**Interpretation:** The Tribunal interpreted the clauses of the Deed of Guarantee regarding

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**Application:** The Tribunal applied the principles of acknowledgement of debt and the extended

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## Parties

- **Judges:** ANIL RAJ C…; K. R. SAJI…
- **Appellants:** State Bank of…
- **Respondents:** Shrenuj & Company…; Nihar P…
- **Other parties:** Anuj Ba…
- **Advocates:** Karan Tha…; Rohan Ag…; +2 more

## Timeline

- **30.09.2013 — Deed of Gua…**: Joint Deed of Guarantee…
- **17.02.2017 — Recall of Credit…**: Financial Creditor recalled credit…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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