The Mumbai Bench of the National Company Law Tribunal (NCLT) has admitted a petition filed by Indian Bank to initiate an Insolvency Resolution Process against Diwan Rahul Nanda, the personal guarantor for Topsgrup Services and Solutions Ltd, a financial service company established in 1907, over a default of more than Rs 50 crore.
The petition, filed under Section 95(1) of the Insolvency and Bankruptcy Code (IBC), 2016, pertained to a default amounting to Rs 29.86 crore, which later inflated to Rs 50.68 crore with interest and penalties. Indian Bank initiated the action after the guarantee extended by Nanda remained unpaid despite repeated demands.
The order copy has the mention of the recommendations made by the Resolution Professional (RP), an application made by the RP for accepting the application. “It is submitted by the Anil Kashi Drolia, the Resolution Professional of Diwan Rahul Nanda that, based on the Petition filed by the Petitioner, it is recommended by the RP in his opinion that this is a fit case to commence the personal insolvency resolution process of Nanda and further the creditor, Indian Bank, should take the necessary steps.Therefore, it is submitted that the NCLT thereafter may pass appropriate orders under section 100 of the Insolvency and Bankruptcy Code, 2016 "Admitting" the said application and declare "Moratorium" under section 101 of the Code and issue "Public Notice" for inviting the claims under section 102 of the Code.”
According to the tribunal’s order dated July 16, 2025, Nanda had stood as a personal guarantor for cash credit facilities sanctioned by Indian Bank to Topsgrup. These facilities included loans worth Rs 32 crore and Rs 71 lakh sanctioned in 2009 and 2010, respectively. The loan agreements were backed by personal guarantees and other security instruments such as demand promissory notes and letters of hypothecation.
NCLT Clears Adani Cementation-Ambuja Merger, Adani To Consolidate Cement Business Under One RoofThe bank declared the borrower’s account as a Non-Performing Asset (NPA) on October 27, 2020, and issued a demand notice under SARFAESI Act on January 30, 2021. With no payment forthcoming, a demand notice under the IBC was issued in September 2023, followed by the insolvency petition in November 2023.
Taking note of the Resolution Professional’s recommendation and the supporting documents, the tribunal held that Nanda’s liability as personal guarantor was co-extensive with the corporate debtor and therefore fit for admission under Section 100(2) of the Code.
A moratorium also has been declared under Section 101 of the IBC, prohibiting any fresh or pending legal action against Nanda and barring him from transferring or alienating any assets for 180 days.
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