# In the matter of Canara Bank Limited vs. Saral Sunil Verma

> NCLT judgment dated 2025-10-07. Citation: TCN-2025-NCLT-01567. Canara Bank Limited filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 7 Oct 2025
- **Citation:** TCN-2025-NCLT-01567
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/canara-bank-limited-vs-saral-sunil-verma-352717b7

## Summary

### Background

Canara Bank Limited filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Saral Sunil Verma, the Personal Guarantor, for a default of Rs. 671,56,76,843.68.

## Facts

Canara Bank Limited filed a petition under Section 95(1) of the IBC against Saral Sunil Verma, a personal guarantor.

The default amount is Rs. 671,56,76,843.68, with the date of default specified as 17.04.2018.

Saral Sunil Verma is the personal guarantor for Frost International Limited.

The Financial Creditor sanctioned credit facilities to Frost International Limited on 07.01.2014 and 21.07.2014.

A supplemental working capital consortium agreement and a supplemental joint deed of hypothecation were executed on 12.05.2014.

The personal guarantors executed a deed of guarantee dated 12.05.2014.

A notice dated 21.09.2019 under Section 13(2) of the SARFAESI Act was issued to the Corporate Debtor and Personal Guarantors.

…

## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** The liability of the guarantor is co-extensive with the liability of the principal

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**Reasoning:** The Tribunal considered the invocation notice, the date of default, and the admission of

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**Interpretation:** The Tribunal interpreted the relevant sections of the IBC and the Limitation

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**Application:** The Tribunal concluded that the petition was within the limitation period due

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## Parties

- **Judges:** Prabhat…; Sushil Mahadeorao…
- **Appellants:** Canara Bank…
- **Respondents:** FROST INTERNATIONA…; Saral Sunil…
- **Other parties:** Pramod Kumar…
- **Advocates:** Anup Kh…; Harsh Rames…; +3 more

## Timeline

- **2014-01-07 — Sanction of Credit…**: Financial Creditor sanctioned credit facilities for Fresh Fund Based Working Capital…
- **2014-05-12 — Supplemental A…**: Supplemental working capital consortium agreement and supplemental joint deed of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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