NCLT Ahmedabad Permits Guarantor's US Travel Despite Creditor Protests, Notes Minor Children's Immigration Needs

The National Company Law Tribunal (NCLT) at Ahmedabad has allowed a bankruptcy bound personal guarantor to travel to the United States despite acknowledging serious concerns about his conduct, taking what it described as a lenient view only because his two minor children's immigration status depends on his US Green Card. A bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma permitted Zankarsinh Kishorsinh Solanki, personal guarantor of Torque Automotive Private Limited, to travel abroad after accepting his plea that his children's Green Card status and future prospects would be harmed if he was unable to maintain his own. Solanki had filed for insolvency resolution in March 2024, disclosing debt liability of Rs 108.82 crore. His repayment plan, offering Rs 50 lakh, was rejected by creditors in November 2024. Bankruptcy proceedings were admitted on October 10, 2025, after initiation under Sections 121 and 122 of the Insolvency and Bankruptcy Code. He sought permission to travel to the US between October 18 and December 27, 2025, arguing that Green Card rules required him to visit once every 180 days to retain the status beyond September 10, 2026. Any lapse, he said, would jeopardise his minor children's study and future career prospects since their residency was tied to him as the primary Green Card holder. Creditors objected sharply, led by Bank of Baroda, which flagged nondisclosure of two immovable properties, failure to report two bank accounts in initial filings, and the applicant's claim of “nil” value for an unexplained investment of Rs 1.63 crore in his repayment plan. The bank also pointed out that Solanki had concealed an FIR registered against him under Sections 120B, 420, 467 and 471 of the Indian Penal Code. Given his existing US Green Card, creditors warned that permitting him to travel risked him absconding. The tribunal noted that Solanki had indeed invested Rs 1.63 crore in a US-based company and now claimed the entity was untraceable. It recorded the absence of any foreign assets or income in the foreign asset schedule of his Income Tax Return for AY 2025–26. These concerns, the Tribunal said, had “merit.” However, the bench said, “Considering the dependency of minor children's immigration status on the Applicant, their study and future career as claimed by the Applicant, a lenient view is taken.” While Solanki had sought permission for a 70-day visit, the tribunal allowed travel only from December 10, 2025 to January 31, 2026, with stringent safeguards. As claims against him exceed Rs 142 crores, he must deposit Rs 40 crore as security in a special bankruptcy interest-bearing account within seven days, to be refunded only if he returns in compliance with the order and forfeited if he does not. He must also execute bonds of two solvent sureties of Rs 50 crore each, backed by FDRs or immovable property, with each surety assuring on oath that he will return to India and will not permanently migrate until the bankruptcy process ends. The tribunal further directed that Solanki's father must attend all hearings as his authorised representative, while the Bankruptcy Trustee must file compliance reports every 15 days confirming Solanki's virtual availability during the travel period. The application was allowed subject to these conditions. Case Title: Zankarsinh Kishorsinh Solanki v. Kanhaiyalal Salawat & Ors. Case Number: IA/1214(AHM)2025 in CP(IB)/395(AHM)2025 For Applicant: Advocate Natasha Shah For Respondent: Advocate Nalini Lodha for Bank of Baroda; Advocate Sunil Kumar for ASREC India Limited.Click Here To Read/Download Order

NCLT Ahmedabad Permits Guarantor's US Travel Despite Creditor Protests, Notes Minor Children's Immigration Needs

Shivangi Bhardwaj

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NCLT Ahmedabad Permits Guarantor's US Travel Despite Creditor Protests, Notes Minor Children's Immigration Needs

Shivangi Bhardwaj

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