NCLT Hyderabad dismissed Canara Bank's petition under Section 95 of IBC seeking initiation of insolvency resolution process against personal guarantor Mr. A.L. Rajasekhar.
The bank claimed Rs. 495.09 crore dues from the guarantor of A.L. Sudarshan Constructions, which was declared NPA in 2006 and is under liquidation.
The tribunal found no clear nexus between the 2005 guarantee and the debt claimed, noting account transfers in 2013 without fresh guarantee documentation.
The respondent successfully argued the claim was time-barred and pertained to a different loan account not covered by his original guarantee.