# Dinesh Bhai Premji Bhai Lathidadia & Anr. vs. The Sarvodaya Sahakari Bank Limited & Anr.

> NCLAT judgment dated 24 Apr 2026. Citation: TCN-2026-NCLAT-00136. This common judgment addresses two appeals filed by personal guarantors, DINESHBHAI…

- **Court:** NCLAT
- **Order date:** 24 Apr 2026
- **Citation:** TCN-2026-NCLAT-00136
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dinesh-bhai-premji-bhai-lathidadia-anr-vs-the-sarvodaya-sahakari-bank-limited-an-4f6249e6

## Summary

### Background

This common judgment addresses two appeals filed by personal guarantors, DINESHBHAI PREMJIBHAI LATHIDADIA (in CA (AT) (Ins) No. 2147 of 2024) and RASHMIBEN DINESHBHAI LATHIDADIA (in CA (AT) (Ins) No. 621 of 2025), against an order passed by the Adjudicating Authority (NCLT, Ahmedabad) that initiated insolvency resolution processes against them. The corporate debtor, Palavi Synthetics Pvt. Ltd., had availed financial facilities from The Sarvodaya Sahakari Bank Limited (SSBL), for which the appellants provided personal guarantees between 2012 and 2015. The corporate debtor defaulted, leading its loan account to be classified as an NPA on 30.07.2016. SSBL invoked the personal guarantees on 11.08.2016 and subsequently obtained a decree for repayment of Rs. 2,88,65,468.35/-

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## Facts

DINESHBHAI PREMJIBHAI LATHIDADIA and RASHMIBEN DINESHBHAI LATHIDADIA (Appellants/Personal Guarantors) executed personal guarantees for financial facilities availed by Palavi Synthetics Pvt. Ltd. (Corporate Debtor/CD) from The Sarvodaya Sahakari Bank Limited (SSBL) on 05.09.2012, 21.02.2013, 22.10.2013, and 23.04.2015.

The Corporate Debtor's loan account was classified as a Non-Performing Asset (NPA) on 30.07.2016.

SSBL invoked the personal guarantees against the appellants on 11.08.2016.

SSBL filed Summary Suit No. 144 of 2016 under Section 99(4) of the Gujarat Co-operative Societies Act, 1961, on 24.10.2016 against the CD and personal guarantors.

A decree was passed in the Summary Suit on 15.09.2017, directing repayment of Rs. 2,88,65,468.35/- with 13% compound interest.

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## Issues and analysis

### Issue 1: Whether the applications filed by The Sarvodaya Sahakari Bank Limited under Section 95 of the IBC …

**Ratio:** The Limitation Act, 1963, including Article 137, applies to proceedings under the IBC. A

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**Reasoning:** The appellants contended that the limitation period started from the guarantee invocation

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**Interpretation:** The NCLAT interpreted Section 95 of the IBC and Rule 7(1) of the PG to CD

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**Application:** Given the 'manifest illegality' in the Adjudicating Authority's computation of

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## Parties

- **Judges:** Mohd. Faiz Alam…; Naresh Sa…
- **Appellants:** DINESHBHAI…; RASHMIBEN…
- **Respondents:** Palavi Synthetics…; THE SARVODAYA…; +1 more
- **Other parties:** Limitatio…; Insolvency and…; +8 more

## Timeline

- **2012-09-05 — Personal Guarantee…**: DINESHBHAI PREMJIBHAI LATHIDADIA executed a personal guarantee for financial facilities…
- **2013-02-21 — Personal Guarantee…**: DINESHBHAI PREMJIBHAI LATHIDADIA executed a personal guarantee for financial facilities…

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