# Unity Small Finance Bank Ltd. vs. Mr. Sarang Rakesh Wadhawan

> NCLT judgment dated 2026-10-09. Citation: TCN-2026-NCLT-01195. Unity Small Finance Bank Ltd. (erstwhile Punjab and Maharashtra Cooperative Bank Limited), as…

- **Court:** NCLT
- **Order date:** 9 Oct 2026
- **Citation:** TCN-2026-NCLT-01195
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/unity-small-finance-bank-limited-vs-sarang-rakesh-wadha-2lz8l

## Summary

### Background

Unity Small Finance Bank Ltd. (erstwhile Punjab and Maharashtra Cooperative Bank Limited), as the Financial Creditor, filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mr. Sarang Rakesh Wadhawan, the personal guarantor of M/s Guruashish Construction Private Limited (Corporate Debtor). The Corporate Debtor had defaulted on a term loan of INR 75,00,00,000/-, which led to its admission into CIRP and subsequent liquidation. The Financial Creditor invoked the personal guarantee for an outstanding amount of Rs. 69,07,10,842/- and filed the petition after the personal guarantor failed to repay the debt.

## Facts

The original lender (Punjab and Maharashtra Cooperative Bank Limited) sanctioned a term loan for INR 75,00,00,000/- on 04.03.2017, which was subsequently revised on 20.04.2017.

The loan was secured by a Deed of Hypothecation, Deed of Mortgage, Demand Promissory Note, and a Common Letter of Guarantee dated 29.04.2017, executed by Mr. Rakeshkumar Kuldipsingh Wadhawan (Respondent) and PPIPL.

A sum of Rs. 35,00,00,000/- was disbursed to the corporate debtor on 29.04.2017, and Rs. 62,00,168/- was disbursed on 05.06.2017.

The Corporate Debtor, M/s Guruashish Construction Private Limited, was admitted into Corporate Insolvency Resolution Process (CIRP) on 24.07.2017 and later ordered to be liquidated on 04.09.2020.

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 95(1) of the IBC, 2016, …

**Ratio:** An application under Section 95 of the IBC is admissible if the creditor establishes the

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**Reasoning:** The Resolution Professional's report confirmed that the application met all requirements

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**Interpretation:** Section 95 of the IBC empowers the Adjudicating Authority to initiate an

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**Application:** The Tribunal found that the Corporate Debtor had committed defaults, and the

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## Parties

- **Judges:** SH. HARIHARAN…; LAKSHMI G…
- **Appellants:** UNITY SMALL…
- **Respondents:** M/s Guruashish…; Sarang Rakesh…
- **Other parties:** Punjab and…; CA Amit…; +1 more
- **Advocates:** Princi Ja…; Dhir & Dhir…; +9 more

## Timeline

- **2017-03-04 — Loan Sanc…**: The original lender sanctioned a…
- **2017-04-20 — Revised Sancti…**: A revised Sanction…

## 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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