Authority: National Company Law Tribunal (NCLT), Allahabad Bench, Prayagraj

Order Date: 12th June, 2026

Case Overview

The National Company Law Tribunal (NCLT) Allahabad Bench, comprising Member (Judicial) Sh. Praveen Gupta and Member (Technical) Sh. Ashish Verma, heard three interconnected Interlocutory Applications (IAs) filed under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016. The applications were in the matter of insolvency proceedings initiated by Canara Bank against the personal guarantors of the corporate debtor, M/s Shamken Spinners Limited.

The three specific cases heard were:

  • IA No.117/2026 in CP (IB) No.117/ALD/2025: Canara Bank vs. Sh. H.B. Chaturvedi (Personal Guarantor)
  • IA No.116/2026 in CP (IB) No.118/ALD/2025: Canara Bank vs. Sh. H.B. Chaturvedi (Personal Guarantor)
  • IA No.118/2026 in CP (IB) No.119/ALD/2025: Canara Bank vs. Sh. Amit Chaturvedi (Personal Guarantor)

For all cases, the Resolution Professional (RP) had already filed reports under Section 99 of the IBC. Counsel for the Financial Creditor (Canara Bank), the Resolution Professional, and the Personal Guarantors were present.

Final Outcome

The tribunal issued distinct directions for the different cases:

  • For IA No.117/2026 (H.B. Chaturvedi): Counsel for the personal guarantor in the other matters informed the bench that the personal guarantor in this specific case, H.B. Chaturvedi, had expired. Counsel for Canara Bank requested the submission of a death certificate to proceed in accordance with the law. The NCLT directed that a copy of the death certificate be supplied to the Financial Creditor's counsel within two weeks.
  • For IA No.116/2026 (H.B. Chaturvedi) and IA No.118/2026 (Amit Chaturvedi): Counsel for the personal guarantors appeared and stated that a vakalatnama (power of attorney) had been filed but was under defect. She undertook to cure this defect within one week. Furthermore, she sought a final opportunity of two weeks to file a reply or objections to the application. The NCLT granted this as a last opportunity, allowing the personal guarantors two weeks to file their reply. Subsequently, the Financial Creditor was given one further week to file a rejoinder. Copies of all filings are to be exchanged between the parties. Both matters were adjourned and listed for their next hearing on 20th July 2026.

A photocopy of the order was directed to be placed on record in all connected matters.

Topics: Insolvency, Personal Guarantee, NCLT Proceedings