# Canara Bank vs Mr. Deepak Nagjibhai Patel

> NCLT judgment dated 6 Apr 2026. Citation: TCN-2026-NCLT-00468. Canara Bank (Financial Creditor) filed a Company Petition (CP(IB) No. 376 of 2025) under…

- **Court:** NCLT
- **Order date:** 6 Apr 2026
- **Citation:** TCN-2026-NCLT-00468
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/canara-bank-vs-mr-deepak-nagjibhai-patel-jcl4h

## Summary

### Background

Canara Bank (Financial Creditor) filed a Company Petition (CP(IB) No. 376 of 2025) under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 against Mr. Deepak Nagjibhai Patel (Personal Guarantor) for a default amount of Rs. 51,34,29,353.81. This debt arose from financial assistance sanctioned to Swami Narayan Diamonds Private Limited (Principal Borrower), which Mr. Patel had personally guaranteed via a deed dated 21.02.2019. The Principal Borrower's account was classified as a Non-Performing Asset (NPA) on 05.07.2024. Subsequently, Canara Bank issued a demand notice under Section 13(2) of the SARFAESI Act on 06.07.2024 and a specific demand notice under the Personal Guarantor Rules on 02.12.2024, neither of which resulted in payment from the Personal Guarantor.

## Facts

Canara Bank (Applicant/Financial Creditor) filed CP(IB) No. 376 of 2025 against Mr. Deepak Nagjibhai Patel (Personal Guarantor) under Section 95(1) of the IBC, 2016.

The petition seeks initiation of Insolvency Resolution Process for a default amount of Rs. 51,34,29,353.81.

The debt is in respect of a Deed of Guarantee dated 21.02.2019 provided by Mr. Patel for financial assistance sanctioned to Swami Narayan Diamonds Private Limited (Principal Borrower).

Canara Bank sanctioned financial assistance of Rs. 38,00,00,000/- to Swami Narayan Diamonds Private Limited.

Credit facilities were extended and renewed to the Corporate Debtor, and guaranteed by the Personal Guarantor.

…

## Issues and analysis

### Issue 1: Whether the document dated 21.02.2019 is a "contract of guarantee" under Section 126 of …

**Ratio:** A document constitutes a "contract of guarantee" if it involves a promise to

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**Reasoning:** The Tribunal perused the Guarantee Agreement dated 21.02.2019, which explicitly states

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**Interpretation:** The explicit use of terms like "guarantee" and "guarantor"

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**Application:** The Tribunal found that the document dated 21.02.2019 is unequivocally a

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Canara…
- **Respondents:** Swami Narayan…; Deepak Nagjibhai…
- **Other parties:** Personal Guarantor…; Contract of…; +8 more

## Timeline

- **2019-02-21 — Deed of Gua…**: Mr. Deepak Nagjibhai Patel executed a Deed of Guarantee for financial assistance granted…
- **2020-11-09 — Working Capital Term…**: Financial Creditor sanctioned a Working Capital Term Loan (WCTL I) of INR 5 Crore under…

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