Authority: National Company Law Tribunal, Mumbai Bench - I

Order Date: 14.07.2026

Case Overview

Canara Bank Limited filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 against Mr. Bapusaheb V. Bandal, personal guarantor for M/S. Raireshwar Packaging Pvt. Ltd. The petition sought initiation of insolvency resolution process for an outstanding debt of ₹8,35,41,516/- (Rupees Eight Crores Thirty-Five Lakhs Forty-One Thousand Five Hundred and Sixteen Only) with further interest and charges, with the date of default being 03.01.2023.

The debt arose from multiple credit facilities extended to the corporate debtor Raireshwar Packaging Pvt. Ltd.: (1) Cash Credit Facility of ₹4,90,00,000/- sanctioned on 23.10.2019 under MSME Scheme; (2) Working Capital Term Loan of ₹21,00,000/- sanctioned on 15.07.2020 under GECL Scheme; (3) Term Loan of ₹3,37,50,000/- sanctioned on 25.09.2020 for boiler purchase; and (4) Vehicle Loan of ₹34,00,000/- sanctioned on 13.11.2020. The respondent executed Guarantee Agreements dated 30.10.2019 and 30.09.2020 guaranteeing repayment of these facilities.

The corporate debtor committed persistent defaults in repayment, leading to classification of accounts as Non-Performing Assets (NPA) on 03.01.2023. The bank issued a Demand Notice under Section 13(2) of SARFAESI Act on 04.01.2023 and subsequently filed OA No. 182 of 2023 before Debts Recovery Tribunal, Pune, which remains pending. A statutory demand notice under Rule 7(1) was issued to personal guarantors on 22.12.2025, but no repayment was made.

The tribunal had appointed Mr. Akhil Ahuja as Resolution Professional vide order dated 05.03.2026, who submitted a report recommending admission of the application under Section 100 of the Code. The respondent was proceeded ex-parte on 22.06.2026 after failing to appear or file reply despite opportunities.

Final Outcome

The tribunal admitted the petition (C.P. (IB) No. 207/MB/2026) and initiated insolvency resolution process against Mr. Bapusaheb V. Bandal. A moratorium was declared for 180 days from the date of admission (14.07.2026) under Section 101 of IBC, 2016, staying all legal proceedings, preventing creditor actions, and restricting asset transfers by the debtor. Mr. Akhil Ahuja (IBBI/IPA-001/IP-P-02072/2020-2021/13213) was confirmed as Resolution Professional and directed to publish public notice inviting claims within 21 days. Canara Bank was directed to deposit ₹75,000/- towards resolution professional's fees and expenses within one week.

Topics: Personal Guarantor Insolvency, Debt Recovery, NCLT Proceedings