NCLT Ahmedabad Orders Recovery of ₹2 Lakh Costs From Personal Guarantor As Arrears of Land Revenue

The National Company Law Tribunal (NCLT) at Ahmedabad has directed that costs of Rs 2 lakh imposed earlier on a personal guarantor be recovered as arrears of land revenue, after finding that he had repeatedly ignored its order and failed to pay the amount. A coram of Judicial Member Justice Shammi Khan and Technical Member Sanjeev Sharma noted that the personal guarantor had shown continued and wilful non-compliance. It observed, “In view of the continued and wilful non-compliance by the Applicant/Personal Guarantor, and in the absence of any proof of deposit of the cost imposed vide order dated 25.08.2025, this Tribunal hereby directs that the recovery of the cost amount of ₹2,00,000/- (Rupees Two Lakhs only) shall be undertaken in accordance with the provisions applicable to recovery of arrears of land revenue" The proceedings related to an application filed by Yash Thakarshibhai Gajera under Section 94 of the Insolvency and Bankruptcy Code seeking to initiate insolvency against him. He had approached the tribunal as a personal guarantor to Gajanand Protein, a partnership firm that had taken cash credit and term loan facilities of about Rs 3.68 crore from Bank of India. By an order dated August 25, 2025, the tribunal had dismissed the insolvency application and imposed costs of Rs 2 lakh. It directed that the amount be deposited in the Prime Minister's National Relief Fund within seven days. When the matter later came up to check compliance, the tribunal found that no proof of payment had been placed on record. There was also nothing to show that the order had been challenged or stayed. Notices were sent to the personal guarantor through registered post, WhatsApp, and email, but he did not appear. Even his counsel sought to withdraw from the case, citing lack of instructions. Taking note of this conduct, the tribunal said its earlier order could not be allowed to remain unimplemented. Invoking its inherent powers under Rule 11 of the NCLT Rules, 2016, it directed the District Magistrate or District Collector at Rajkot to recover the amount under the Gujarat Land Revenue Code, 1879. Case Title: Yash Thakarshibhai Gajera and Anr v. Bank of IndiaCitation: 2026 LLBiz NCLT (AHM) 20 Case Number: CP(IB)/322(AHM)2025 For the Applicant/PG: Advocate Sunil BhavsarClick Here To Read/Download Order

NCLT Ahmedabad Orders Recovery of ₹2 Lakh Costs From Personal Guarantor As Arrears of Land Revenue

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