The retraction has effectively concluded the legal battle concerning Sanghi’s personal guarantee of ₹84 crore.
Ambuja Cements, which took over Sanghi Industries in 2023 for ₹5,185 crore, has also withdrawn its plea against Alok Sanghi previously submitted to the Ahmedabad bench of the National Company Law Tribunal (NCLT) on April 10, 2026.
Sanghi had approached the NCLAT to contest an NCLT ruling from November 2025 related to Ambuja Cements’ insolvency plea regarding a personal guarantee of ₹84 crore that he had provided. Following the plea, the NCLT appointed an interim resolution professional.
In April, the appellate tribunal learned that a settlement had been reached between Sanghi and Ambuja Cements, which led the Adani Group firm to file an application for withdrawing its Section 95 plea under the IBC with the NCLT.
It was noted that the report from the Resolution Professional (RP) under Section 99 has yet to be submitted, primarily due to the stay order issued by the NCLAT.
On May 26, Sanghi’s counsel requested permission to withdraw the petition before the NCLAT, which was granted.
”The learned Counsel for the appellant (Alok Sanghi) states, under instruction, that he wishes to withdraw this appeal. The statement by the learned Counsel is recorded. The appeal is dismissed as withdrawn,” stated a two-member NCLAT bench in its order.
Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, permits creditors to initiate insolvency proceedings against debtors, including personal guarantors and partnership firms.
The Adani Group company initiated insolvency actions against Sanghi under Section 95 of the IBC, citing his role as personal guarantor to Sanghi Industries.
Section 95 allows creditors to start insolvency resolution processes against individuals, including those who act as personal guarantors to corporate debtors and partnership firms.
Sanghi contested this action before the NCLAT, arguing that he had not signed a personal guarantee in the share purchase agreement dated August 3, 2023, related to the acquisition of Sanghi Industries, which only included warranties and indemnities.
In August 2023, Ambuja Cements executed a share purchase agreement to acquire Sanghi Industries from its promoters, accompanied by an open offer. The Sanghi family provided indemnities to the acquirer as part of the transaction.
However, a conflict emerged regarding an outstanding electricity bill, and they were unable to secure any relief. With Sanghi Industries failing to settle its obligations, Ambuja Cements invoked Sanghi’s personal guarantee, demanding ₹84 crore.
Ambuja Cements finalized the acquisition of Sanghi Industries in December 2023, which was valued at ₹5,185 crore.
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(Edited by : Navneet Singh)
