Authority: National Company Law Tribunal Allahabad Bench Prayagraj (Division Bench)

Order Date: 10th June, 2026

Case Overview

The National Company Law Tribunal (NCLT) Allahabad Bench heard an application filed by Canara Bank under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC). The application seeks initiation of the Personal Insolvency Resolution Process (PIRP) against Mr. Divyj Ahuja, who provided a personal guarantee for credit facilities extended to M/s Shivom Dayal Energies (Haridwar) Pvt. Ltd. (CIN: IN No. U67190KA1906PLC001069). The Corporate Debtor failed to repay its debt, prompting the financial creditor to initiate proceedings against the personal guarantor.

The application specifies the debt particulars as of 30th December 2025, with a default amount of ₹34,04,13,534.04 and a date of default of 10th November 2025. A demand notice was issued to the personal guarantor under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019 on 17th March 2026.

The Tribunal referenced the Supreme Court's judgment in Dilip B Jiwrajka vs Union of India & Ors. (Writ Petition (Civil) No 1281 of 2021), which clarified that no judicial adjudication occurs at the stages envisaged in Sections 95 to 99 of the IBC. The resolution professional's role at this stage is facilitative - to collate facts and submit a recommendatory report on whether to accept or reject the application.

Final Outcome

The NCLT appointed Ms. Shalini Bhatnagar (IBBI No.: IBBI/IPA-001/IP-P-02878/2024-2025/14403) as the Resolution Professional. Her address is C-51 1st Floor Corporation Bank Building, Awas Vikas Nainital Road, Udham Singh Nagar, Uttarakhand, 263153, with email cashalinisrivastava@gmail.com. Her Authorization for Assignment (AFA) is valid until 30th June 2027, with no disciplinary proceedings pending against her.

The RP is directed to:

  • File consent and declaration within seven days of receiving the order
  • Examine the application as per Section 99(6) of IBC
  • Submit a report within 10 days recommending acceptance or rejection of the application under Section 99(7)

An interim moratorium commenced under Section 96(1)(a) of IBC upon filing of the application. The applicant (Canara Bank) is directed to serve copies of the application and order to the Interim Resolution Professional. The matter is listed for next hearing on 29th July 2026 for report/hearing.

Topics: Personal Guarantor Insolvency, NCLT Proceedings, Bank Debt Recovery