# In the matter of Canara Bank vs. Sachin Goyal

> Read the full IBC case summary for In the matter of Canara Bank vs. Sachin Goyal. NCLT judgment dated 2025-10-07. Citation: TCN-2025-NCLT-01529.

- **Court:** NCLT
- **Order date:** 7 Oct 2025
- **Citation:** TCN-2025-NCLT-01529
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/canara-bank-vs-sachin-goyal-8a25dce3

## Summary

### Background

The application was filed by the Resolution Professional under Section 99 of the IBC, recommending the admission of an application filed by Canara Bank under Section 95 of the Code, seeking commencement of the Insolvency Resolution Process against the personal guarantor, Mr. Sachin Goyal, of M/s Shree Om Prime Foods Pvt. Ltd.

## Facts

Canara Bank, the financial creditor, extended credit facilities totaling Rs. 475.00 Lakhs to M/s Shree Om Prime Foods Pvt. Ltd. (Corporate Debtor) via a sanction letter dated February 25, 2015. In connection with this, Mr. Sachin Goyal (Personal Guarantor) executed a Guarantee Agreement on February 27, 2015. Subsequently, the Corporate Debtor sought and received extensions of its Secured Overdraft Limit (SODH) multiple times, increasing the total exposure.

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## Issues and analysis

### Issue 1: Whether the Personal Guarantor, Mr. Sachin Goyal, committed a default in repayment of his…

**Ratio:** A default in repayment of liabilities by the Corporate Debtor and the Personal Guarantor,…

**Reasoning:** The Adjudicating Authority found that the Corporate Debtor's account was classified as an…

**Interpretation:** The court interpreted 'default' to include the non-payment of liabilities by…

**Application:** The Corporate Debtor's account became an NPA, and the Personal Guarantor failed…

## Parties

- **Judges:** Reeta K…; Kavita Bha…
- **Advocates:** For the RP: J.P.…; In pe…; +2 more

## Timeline

- **February 25, 2015 — Credit Facility…**: Canara Bank sanctioned credit facilities of…
- **February 27, 2015 — Guarantee Agreement…**: The Personal Guarantor executed a Guarantee…

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