Mumbai: NCLT Allows Withdrawal Of Insolvency Plea Against Personal Guarantor After Settlement In ₹1.58 Crore Case

Mumbai, April 16: The National Company Law Tribunal (NCLT) has dismissed the insolvency proceedings to be initiated against Swapna Gawkar, who stood as a personal guarantor for Hunter Security Force Private Limited, after the operational creditor informed the tribunal about the settlement directions to be carried out between them.

Tribunal notes settlement progress

“It is further recorded that on February 24, 2026, and March 16, 2026, the counsel for the operational creditor (OC) submitted that settlement discussions were underway between the parties and that a sum of Rs 10,00,000 had been received pursuant thereto. Meanwhile, on March 25, 2026, the OC has sought further time to explore the possibility of settlement. However, the said request was declined by this Bench, taking into consideration that the Resolution Professional had already recommended dismissal of the petition,” the tribunal maintained.

Background of the case

The petition was filed by Ravindra Ghanbahadur under Section 95 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of insolvency resolution proceedings against Swapna Gawkar, who had stood as a personal guarantor for Hunter Security Force Private Limited.

As per the petition filed, the insolvency was filed against an alleged default of Rs 1.58 crore in payment of commission arising out of a recovery services agreement.

As per the case, the petitioner had engaged in January 2024 to recover dues of over Rs 9.25 crore for the company, with a fixed commission of Rs 1.5 crore payable upon completion. A deed of guarantee executed the same day made the respondent personally liable in case of default.

The petitioner claimed to have completed the assignment within 15 months but alleged non-payment of dues, prompting invocation of the guarantee and issuance of demand notices in May and August 2025.

Resolution professional’s findings

During the proceedings, the tribunal had appointed a resolution professional, who later recommended rejection of the petition, citing lack of adequate supporting documents.

Plea withdrawn after settlement

However, before the matter could be adjudicated, the petitioner moved an affidavit seeking withdrawal of the plea, stating that the parties had resolved their disputes amicably. It was also submitted that part payment of Rs 10 lakh had been received during settlement discussions.

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Taking note of the settlement and the withdrawal request, the bench comprising Member (Technical) Prabhat Kumar and Member (Judicial) Sushil Mahadeorao Kochey held that the petition was liable to be dismissed as withdrawn.

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