Former Sanghi Industries promoter settles with Ambuja, drops NCLAT plea

Alok Sanghi, former promoter of Sanghi Industries, has withdrawn his plea before the appellate tribunal, NCLAT, against Ambuja Cements following the settlement of a dispute with the country's second-largest cement manufacturer. The withdrawal has brought the litigation between the two over Sanghi's personal guarantee of Rs 84 crore to a close.

Ambuja Cements, which acquired Sanghi Industries in 2023 in a Rs 5,185 crore deal, has already withdrawn its plea against Alok Sanghi filed before the Ahmedabad bench of the National Company Law Tribunal (NCLT) on April 10, 2026.

Sanghi had moved the appellate tribunal, NCLAT, challenging an NCLT order passed in November 2025 on Ambuja Cements' insolvency plea regarding a personal guarantee of Rs 84 crore extended by him. The NCLT had appointed an interim resolution professional after the plea.

Earlier in April, the appellate tribunal was informed that a settlement had been arrived at between Sanghi and Ambuja Cements, following which the Adani Group firm moved an application before the NCLT seeking withdrawal of its Section 95 plea under the IBC.

It was also pointed out that the report of the Resolution Professional (RP) under Section 99 has not been filed, largely due to the stay order passed by the NCLAT.

Subsequently, on May 26, counsel appearing for Sanghi sought permission to withdraw the petition before the NCLAT, which was allowed.

"The learned Counsel for the appellant (Alok Sanghi) makes a statement on instruction that he is withdrawing this appeal. The statement of the learned Counsel is recorded. The appeal is dismissed as withdrawn," recorded a two-member NCLAT bench in its order.

Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, allows creditors to initiate insolvency proceedings against debtors, including personal guarantors and partnership firms.

The Adani Group company had initiated insolvency proceedings against Sanghi under Section 95 of the Insolvency & Bankruptcy Code (IBC) in his capacity as personal guarantor to Sanghi Industries.

Section 95 empowers creditors to initiate insolvency resolution proceedings against individuals, including personal guarantors to corporate debtors and partnership firms.

The move was challenged by Sanghi before the NCLAT, contending that he had not executed a personal guarantee under the share purchase agreement signed on August 3, 2023, for the acquisition of Sanghi Industries, and that the agreement provided only for warranties and indemnities.

In August 2023, Ambuja Cements entered into a share purchase agreement to acquire Sanghi Industries from its promoters, followed by an open offer. As part of the transaction, the Sanghi family provided indemnities to the acquirer.

However, a dispute arose on an unpaid electricity bill, and they failed to get any relief. As Sanghi Industries could not clear its liabilities, Ambuja Cements invoked Sanghi's personal guarantee and demanded Rs 84 crore.

Ambuja Cements completed the acquisition of Sanghi Industries in December 2023. The acquisition was valued at Rs 5,185 crore.