# In the matter of Neel Praful Bhalakia vs. Canara Bank & Ors.

> NCLT judgment dated 2025-05-06. Citation: TCN-2025-NCLT-00111. The case involves a report filed by the Resolution Professional (RP) in a petition filed by a…

- **Court:** NCLT
- **Order date:** 6 May 2025
- **Citation:** TCN-2025-NCLT-00111
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/neel-praful-bhalakia-vs-canara-bank-ors-1dafaeac

## Summary

### Background

The case involves a report filed by the Resolution Professional (RP) in a petition filed by a personal guarantor under Section 94 of the Insolvency and Bankruptcy Code (IBC) 2016. The RP was appointed on 16.02.2022. The Resolution Professional's report was found to be incomplete and improper. Several financial creditors, including Canara Bank Factors Limited, PNB, and Jubilant Life Sciences, objected to the PG application and the RP's report. The application was filed on 16 Feb 2022 and several hearings have taken place. The RP's report failed to address the fact that many creditors had already initiated proceedings under the SARFESI Act or arbitration. The proof of service was also deemed unsatisfactory.

## Facts

Neel Praful Bhalakia filed a petition as a personal guarantor under Section 94 of the IBC 2016. The Resolution Professional (RP) was appointed on 16.02.2022. The RP filed a report which was found to be incomplete and improper. Canara Bank Factors Limited, PNB, and Jubilant Life Sciences objected to the PG application and the RP's report. The application was filed on 16 Feb 2022. The RP's report did not address the fact that many creditors had already initiated proceedings under the SARFESI Act or arbitration. The RP did not submit relevant documents to substantiate whether the guarantor complied with Section 238A in filing the application. The applicant PG has raised various loans with multiple creditors but has submitted this application based on one SARFESI Act

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## Issues and analysis

### Issue 1: Whether the Resolution Professional's report …

**Ratio:** A Resolution Professional's report must be complete and proper to allow for informed

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**Reasoning:** The court observed that the RP's report was incomplete and did not adequately address the

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**Interpretation:** The completeness and propriety of the RP's report are crucial for the

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**Application:** In this case, the RP's failure to address the concerns of the financial

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Neel Praful…
- **Respondents:** Canara Bank…

## Timeline

- **2022-02-16 — RP Appoin…**: Resolution Professional…
- **2022-02-16 — Application Fi…**: Date of filing of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94 — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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