# In the matter of Canara Bank vs. Jagdish Goyal

> NCLT judgment dated 2025-04-07. Citation: TCN-2025-NCLT-01013. Canara Bank filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 7 Apr 2025
- **Citation:** TCN-2025-NCLT-01013
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-jaipur/canara-bank-vs-jagdish-goyal-87646ba9

## Summary

### Background

Canara Bank filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Mr. Jagdish Goyal, the personal guarantor to Shree Om Prime Foods Pvt. Ltd., the Corporate Debtor.

## Facts

Canara Bank extended credit facilities to Shree Om Prime Foods Pvt. Ltd. to the tune of Rs. 475.00 Lakhs vide sanction letter dated 25.02.2015.

Mr. Jagdish Goyal executed a Guarantee Agreement dated 27.02.2015 in relation to the aforementioned facility.

The Corporate Debtor sought an extension of SODH from Rs. 200 Lakhs to Rs. 450 Lakhs, which was granted vide sanction letter dated 10.08.2018.

The Corporate Debtor's account was classified as a non-performing asset on 29.01.2022 due to non-adherence to financial discipline.

Canara Bank issued a demand notice under Section 13(2) of the SARFAESI Act, 2002 dated 31.01.2022 to Mr. Jagdish Goyal.

The Petitioner proposed the name of Mr. Jai Prakash Rawat as the Resolution Professional.

## Issues and analysis

### Issue 1: Whether the application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** The application is maintainable under Section 95(1) of the Insolvency and Bankruptcy

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**Reasoning:** The petitioner, Canara Bank, is a financial creditor of Shree Om Prime Foods Pvt. Ltd.

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**Interpretation:** Section 95(1) allows a financial creditor to initiate insolvency resolution

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**Application:** The Adjudicating Authority admitted the application and proceeded with the

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## Parties

- **Judges:** Praveen…; Kavita Bha…
- **Appellants:** Canara…
- **Respondents:** Shree Om Prime…; Jagdish…
- **Other parties:** Jai Prakash…
- **Advocates:** Karan Prata…

## Timeline

- **2015-02-25 — Sanction…**: Canara Bank extended credit facilities to Shree Om Prime Foods Pvt. Ltd. to the tune of…
- **2015-02-27 — Guarantee Ag…**: Mr. Jagdish Goyal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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