# Canara Bank Ltd. vs. Mr. Subhash Dabas

> NCLT judgment dated 2026-10-12. Citation: TCN-2026-NCLT-01263. Canara Bank Ltd. (Financial Creditor) filed a petition under Section 95(1) of the Insolvency…

- **Court:** NCLT
- **Order date:** 12 Oct 2026
- **Citation:** TCN-2026-NCLT-01263
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/canara-bank-vs-subhash-dabas-857aj

## Summary

### Background

Canara Bank Ltd. (Financial Creditor) filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate a Personal Insolvency Resolution Process (PIRP) against Mr. Subhash Dabas (Personal Guarantor). The petition relates to a personal guarantee furnished by Mr. Dabas for credit facilities availed by M/s Tirupati Infraprojects Private Limited (Corporate Debtor). The Corporate Debtor defaulted on its obligations, leading to its accounts being classified as NPA. The guarantee was invoked by Canara Bank. Mr. Dabas disputed his liability, contending that the guarantees were forged, that he was discharged from liability due to a Corporate Debt Restructuring (CDR) package and novation, and that the application was barred by limitation.

## Facts

Canara Bank Ltd. (Financial Creditor) filed a petition under Section 95(1) of the IBC against Mr. Subhash Dabas (Personal Guarantor).

The petition seeks initiation of Personal Insolvency Resolution Process (PIRP) against Mr. Subhash Dabas.

The PIRP is in respect of a personal guarantee furnished by Mr. Subhash Dabas for credit facilities availed by M/s Tirupati Infraprojects Private Limited (Corporate Debtor).

The Corporate Debtor availed financial facilities from a consortium of banks, including Canara Bank.

The credit facilities were secured by guarantees furnished by Mr. Subhash Dabas and other guarantors.

Deeds of Guarantee dated 16.02.2009 and 27.02.2013 were placed on record.

…

## Issues and analysis

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

**Ratio:** An acknowledgment of liability by the Corporate Debtor in its balance sheets, when

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**Reasoning:** Section 238A of the IBC makes the Limitation Act, 1963, applicable. Article 137 provides

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**Interpretation:** The NCLT interpreted Section 18 of the Limitation Act in conjunction with the

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**Application:** The application, though filed beyond the initial three-year period from the

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## Parties

- **Judges:** ANUPINDER SINGH…; RAVINDRA CHATURVED…
- **Appellants:** Canara Ban…
- **Respondents:** M/s Tirupati…; Subhash…
- **Other parties:** Jagmohan…; Adarsh…; +9 more
- **Advocates:** Karan G…; Riya…; +4 more

## Timeline

- **2007-01-05 — Corporate Debtor…**: M/s Tirupati Infra Projects…
- **2007-11-10 — Respondent Inducted as…**: Mr. Subhash Dabas was inducted as an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 100 — Admission or rejection of application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-100)

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