NCLT Declares Former DHFL Chairman Kapil Wadhwa Bankrupt Over ₹4546 Crore Debt

The petitioner extended various credit facilities to the corporate debtor. The respondent and the other guarantor executed a Joint Deed of Guarantee in favor of the petitioner, wherein they personally guaranteed to the bank the due payment, not exceeding Rs. 50,656.86 Cr.

Later on, the CIRP of the corporate debtor was initiated in furtherance to a section 7 IBC petition filed by the RBI. Pursuant to the public announcement inviting claims, the petitioner filed his claim, which was admitted by the administrator.

On occurrence of default under the DHFL facility agreement, the petitioner issued the Guarantee Invocation Notice calling upon the respondent (Personal Guarantor) to pay Rs. 3958.30 Cr. However, the default still continued, and the petitioner issued the demand notice in Form B under the provisions of the Code. On failure of the personal guarantor to repay the amount, the petitioner filed the section 95 IBC petition to IRP of the personal guarantor. The NCLT Mumbai Bench-I admitted the petition and passed an order u/s 100 IBC. The respondent challenged the order before the NCLAT, but the same was dismissed by the tribunal. Thereafter, he preferred an appeal before the Hon'ble Supreme Court, in which no order has been passed to date.

After the PG admission, the respondent was required to submit the repayment plan, in consultation with RP. However, the respondent failed to submit the repayment plan, due to which the creditors unanimously agreed to initiate the bankruptcy process.

Thereafter, the Union Bank of India filed the petition u/s 123 of the IBC to initiate the bankruptcy process of the personal guarantor. After adjusting the amounts recovered, the total amount due and payable by the respondent was Rs. 4545.96 Crores. The NCLT admitted the petition and admitted the petition vide order dated August 14, 2025, and appointed Mr. Sanjay Kumar Mishra as the bankruptcy trustee.

Case Name: Union Bank of India v. Mr. Kapil Wadhawan

Case No.: C.P. No. (IB) 755/MB/C-III/2025

Bench: Hon'ble Ms. Lakshmi Gurung, Member (Judicial) and Hon'ble Shri. Hariharan Neelakanta Iyer, Member (Technical)

For Applicants: Animesh Bisht, Partner; Aniruddh Gambhir, Principal Associate; and Pushkar Deo, Associate. L. Viswanathan, Senior Partner.

Order Date: 14.08.2025