Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: 12.10.2026
Case Overview
This is an appeal (Comp. App. (AT) (Ins) No. 1944 of 2026) filed by Canara Bank against an order of the Adjudicating Authority (NCLT). The Appellant, Canara Bank, had filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, against the Respondent, Karan A Chanana, for the recovery of a total debt amounting to approximately Rs. 425 crores. The Learned Adjudicating Authority dismissed this application solely on the technical ground of non-invocation of the personal guarantee. The Appellant's main grievance is that this issue of non-invocation was never raised by the Respondent and was taken up suo motu by the Adjudicating Authority without providing the Appellant an opportunity to be heard on the matter. The Appellant contends that, given an opportunity, it could have satisfied the Authority regarding the invocation of the guarantee.
Final Outcome
The NCLAT, after a preliminary hearing, found a prima facie case in favour of the Appellant Bank. The tribunal issued formal notice to the Respondents, directing that steps for service be completed within three working days. The appeal was listed for the next hearing on 06.11.2026. Crucially, the NCLAT passed two interim orders: (1) the impugned order of the NCLT is stayed until the next date of listing, and (2) the Respondent is restrained from disposing of or creating any third-party interest in his properties until the next date of listing.
Topics: Insolvency Proceeding, Debt Recovery, Legal Appeal