# Canara Bank vs. Mrs. Shewta Deepak Patel

> NCLT judgment dated 9 Apr 2026. Citation: TCN-2026-NCLT-00473. Canara Bank, acting as the Financial Creditor, filed a Company Petition (CP(IB) No. 377 of…

- **Court:** NCLT
- **Order date:** 9 Apr 2026
- **Citation:** TCN-2026-NCLT-00473
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/canara-bank-vs-mrs-shewta-deepak-patel-wasgq

## Summary

### Background

Canara Bank, acting as the Financial Creditor, filed a Company Petition (CP(IB) No. 377 of 2025) on February 12, 2025, under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC), against Mrs. Shweta Deepak Patel, the Personal Guarantor. The petition sought to initiate an Insolvency Resolution Process due to a default amount of Rs 51,34,29,353.81/- related to a Deed of Guarantee dated February 21, 2019. The Financial Creditor had sanctioned various financial facilities, including Rs. 38,00,00,000/- and GECL term loans, to the Principal Borrower, Swami Narayan Diamonds Private Limited, which Mrs. Patel had personally guaranteed. The Principal Borrower's account was declared a Non-Performing Asset (NPA) on July 5, 2024, leading to the issuance of demand notices

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## Facts

Canara Bank (Applicant/Financial Creditor) filed CP(IB) No. 377 of 2025 on February 12, 2025, under Section 95(1) of IBC against Mrs. Shweta Deepak Patel (Personal Guarantor).

The petition seeks to initiate Insolvency Resolution Process against Mrs. Shweta Deepak Patel for a default amount of Rs 51,34,29,353.81/-.

The default relates to a Deed of Guarantee dated February 21, 2019, executed by Mrs. Shweta Deepak Patel.

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

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

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## Issues and analysis

### Issue 1: Whether the document dated February 21, 2019, constitutes a 'contract of guarantee' under Section …

**Ratio:** The document is a 'Contract of Guarantee' as it explicitly names the respondent as a

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**Reasoning:** The Tribunal found that the agreement explicitly referred to the respondent as a

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**Interpretation:** The Tribunal interpreted Section 126 of the Indian Contract Act, which defines

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**Application:** Given the explicit terminology and clauses in the February 21, 2019 document,

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Canara…
- **Respondents:** Swami Narayan…; Shewta Deepak…
- **Other parties:** Insolvency and…; Personal Gu…; +12 more
- **Advocates:** Yash Dh…; Ruchita…; +4 more

## Timeline

- **2019-02-21 — Deed of Guarantee and…**: Deed of Guarantee executed by Personal Guarantor. Letter of Renewal for credit facilities…
- **2020-09-01 — Renewed Sancti…**: Renewed Sanction Letter for Credit…

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