Nikhil & Niret Alva Appeal Canara Bank Insolvency Petition

Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi

Order Date: 03.11.2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) heard two connected appeals (Comp. App. (AT) (Ins) No. 2120 of 2026 and Comp. App. (AT) (Ins) No. 2121 of 2026) filed by appellants Nikhil Alva and Niret Alva against respondents Canara Bank & Anr. The appeals challenge an order from the Adjudicating Authority (NCLT) that admitted a petition filed by Canara Bank under Section 95 of the Insolvency and Bankruptcy Code, 2016, initiating insolvency proceedings against the appellants as personal guarantors.

The core legal dispute centers on the question of limitation. The appellants, represented by Senior Counsel Dr. Menaka Guruswamy, vehemently argued that the financial creditor's (Canara Bank's) petition was "evidently barred by limitation." Their argument references paragraph 9 of the impugned NCLT judgment, which itself cites dates mentioned in the bank's petition. The appellants contend that even if these dates are taken as correct, the petition falls outside the permissible limitation period.

A significant point of contention is the Adjudicating Authority's reasoning for perceiving an acknowledgment of debt. The Authority relied on alleged WhatsApp chats exchanged between the Financial Creditor (Canara Bank) and the Personal Guarantor (the appellants). The appellants argue that these chats, even if taken at face value, do not constitute a valid acknowledgment of debt under the law. In support of this legal position, the appellants' counsel relied on the precedent set by the NCLAT in Mohan Lal Goel v. National Skill Development Corporation, 2022 SCC OnLine NCLAT, 2020.

Final Outcome

The NCLAT bench, comprising Justice Mohammad Faiz Alam Khan (Member-Judicial) and Naresh Salecha (Member-Technical), found that the "matter requires consideration." The tribunal issued formal notice to the respondents (Canara Bank & Anr.) on both the appeal and a stay application. The appellants were directed to complete the necessary steps for serving this notice within three working days from the order date. The two connected appeals have been listed for the next hearing on 01.12.2026 under the caption "After Notice."

Topics: Insolvency Law, Limitation, Personal Guarantee