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Informist, Wednesday, Oct. 1, 2025

NEW DELHI – The National Company Law Appellate Tribunal has asked the Kolkata bench of the National Company Law Tribunal to decide afresh State Bank of India's insolvency plea against Ramesh Kumar Agarwal, the former director of Rythem Overseas Trade Ltd. The appellate tribunal set aside the Kolkata tribunal's 2024 order to admit SBI's personal insolvency plea against Agarwal for a default of INR 1.44 billion.

"The matter is remanded back to the tribunal to decide the issue raised by the appellant (Agarwal) regarding limitation i.e. the application filed under Section 95 (of the Insolvency and Bankruptcy Code, 2016) is beyond the period of three years," said the appellate tribunal. A bench of judicial members Rakesh Kumar Jain, Mohammad Faiz Alam Khan, and technical member Indevar Pandey said that SBI can contest Agarwal's plea for which the appellate tribunal has not expressed any opinion on merit of the case. The parties shall appear before the Kolkata tribunal on Oct. 27, said the appellate tribunal.

In 2019, the Kolkata tribunal had admitted an application to start insolvency proceedings against Rythem Overseas. Thereafter, the tribunal ordered the company's liquidation in 2021.

According to Agarwal, SBI filed the personal insolvency application on the basis of four agreements of guarantee executed by him with the bank for Rythem Overseas from 2008 to 2013. Agarwal said the Kolkata tribunal has not decided the issue of limitation raised before it. He said that the last deed of guarantee was in 2013 and notice of demand was issued in 2014. Under Article 137 of the Limitation Act, a personal insolvency application can be only within the period of three years from the date of occurring of cause of action, which in this case, allegedly accrued in 2014. However, the personal insolvency application was filed by SBI only in 2021.

On the National Stock Exchange, SBI shares settled at INR 864.10, down 1% from the previous close.  End

Reported by Surya Tripathi

Edited by Nishant Maher

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