Authority: National Company Law Appellate Tribunal, Chennai Bench

Order Date: 17 August 2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) at Chennai heard three consolidated appeals (Company Appeal (AT) (CH) (Ins) Nos. 360/2026, 361/2026, and 363/2026) filed by appellants Nuzhat Aisha Naseer, Awaiz Ahmed, and Naseer Ahmed against Canara Bank and three other respondents. The appeals concern bankruptcy proceedings initiated against the appellants as personal guarantors.

During the previous hearing on 30 July 2026, the appellants had invoked Section 142(1)(b) of the Insolvency and Bankruptcy Code, which allows for discharge of bankruptcy proceedings at any stage. The bankruptcy trustee (Mr. Ravindra Beleyur, RP/R4) expressed concerns about the appellants' cooperation, particularly regarding Mr. Naseer Ahmed's availability. The Tribunal had accordingly directed Mr. Naseer Ahmed to contact the bankruptcy trustee.

In the current hearing, the Tribunal noted that Mr. Naseer Ahmed had eventually contacted the trustee, ceasing what was described as "playing the Tom and Jerry game." The appellants' counsel, Mr. P.H. Arvindh Pandian, argued that his clients require a reconciled statement from Canara Bank to determine the exact remaining liability, as the bank had already realized certain amounts through the sale of security interests. The Tribunal acknowledged that in bankruptcy proceedings, personal guarantors are liable only to the extent of the value of their personal assets, which serves as an upper cap on their liability.

The counsel for the financial creditors (Canara Bank) stated that the banks had already submitted their statements and expressed willingness to meet with the appellants, with or without their counsel, to share fresh bank statements.

Final Outcome

The Tribunal adjourned the matter to 25 August 2026 for further hearing. All interim orders granted by the Tribunal were directed to continue operating until the next date of listing. The outcome remains pending pending reconciliation of accounts and further submissions.

Topics: Personal Guarantor Liability, Bankruptcy Proceedings, Bank Reconciliation