# STCI Finance Limited vs. Mr. Sanjay Laxmichand Karani

> NCLT judgment dated 2026-10-16. Citation: TCN-2026-NCLT-01259. STCI Finance Limited (Financial Creditor) filed a petition under Section 95 of the Insolvency…

- **Court:** NCLT
- **Order date:** 16 Oct 2026
- **Citation:** TCN-2026-NCLT-01259
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/stci-finance-limited-vs-sanjay-laxmichand-karani-x249c

## Summary

### Background

STCI Finance Limited (Financial Creditor) filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Mr. Sanjay Laxmichand Karani (Personal Guarantor) for a default on a corporate term loan granted to M/s. Himadri Foods Limited (Corporate Debtor). Mr. Karani had executed a Deed of Personal Guarantee. The Corporate Debtor's account was classified as a Non-Performing Asset (NPA), and a Corporate Insolvency Resolution Process (CIRP) had already been initiated and concluded against the Corporate Debtor.

## Facts

STCI Finance Limited (Petitioner/Financial Creditor) filed a petition under Section 95 of the IBC, 2016, against Mr. Sanjay Laxmichand Karani (Respondent/Personal Guarantor).

The petition seeks initiation of Insolvency Resolution Process against Mr. Sanjay Laxmichand Karani, being the Personal Guarantor of M/s. Himadri Foods Limited (Corporate Debtor).

The default amount is Rs. 22,74,77,780/- as of 20.07.2021, with the date of default being 06.07.2021.

The Corporate Debtor applied for a Corporate Term Loan on 27.10.2017, and STCI Finance Limited sanctioned a loan of Rs. 25 Crores.

A Loan Agreement was executed between STCI Finance Limited and Himadri Foods Limited on 02.02.2018.

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## Issues and analysis

### Issue 1: Whether the petition filed by STCI Finance Limited under Section 95 of the IBC, 2016, against Mr. …

**Ratio:** A petition under Section 95 of the IBC is maintainable if the debt and default are

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**Reasoning:** The Financial Creditor successfully established the existence of debt and default. The

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**Interpretation:** Section 95 of the IBC allows a financial creditor to initiate insolvency

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**Application:** The NCLT found the petition complete and meriting admission based on the

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## Parties

- **Judges:** SH. VINAY…; SH. CHARANJEET…
- **Appellants:** STCI Finance…
- **Respondents:** M/s. Himadri…; Sanjay Laxmichand…
- **Other parties:** Rajendra R.…; Hari Kishan…; +2 more
- **Advocates:** Ayush R…; Mitali…; +1 more

## Timeline

- **27.10.2017 — Loan Appli…**: Corporate Debtor applied…
- **06.12.2017 — Sanction Lette…**: STCI Finance Limited issued Sanction…

## 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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