# Canara Bank Ltd. vs. Mr. Suraj Mal Dabas

> NCLT judgment dated 2026-10-12. Citation: TCN-2026-NCLT-01241. Canara Bank Ltd. (Financial Creditor) filed a petition under Section 95(1) of the IBC against…

- **Court:** NCLT
- **Order date:** 12 Oct 2026
- **Citation:** TCN-2026-NCLT-01241
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/canara-bank-vs-suraj-mal-dabas-mzccg

## Summary

### Background

Canara Bank Ltd. (Financial Creditor) filed a petition under Section 95(1) of the IBC against Mr. Suraj Mal Dabas (Personal Guarantor) to initiate a Personal Insolvency Resolution Process (PIRP). This was due to the default on credit facilities availed by M/s Tirupati Infraprojects Private Limited (Corporate Debtor), for which Mr. Dabas had provided a personal guarantee. The Corporate Debtor's credit facilities were restructured under a Corporate Debt Restructuring (CDR) mechanism, but the Corporate Debtor failed to comply, leading lenders to exit the arrangement. The guarantee was invoked on 23.06.2015. The Resolution Professional (RP) recommended accepting the application. Mr. Dabas disputed the authenticity of the guarantee documents, claimed discharge from

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## Facts

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

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

The PIRP relates to a personal guarantee furnished by Mr. Suraj Mal Dabas for credit facilities availed by M/s Tirupati Infraprojects Private Limited (Corporate Debtor).

The Corporate Debtor availed various financial facilities from a consortium of banks for construction of a hotel and commercial space.

The credit facilities were secured by guarantees from the Respondent and other guarantors, including Deeds of Guarantee dated 16.02.2009 and 27.02.2013.

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## Issues and analysis

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

**Ratio:** A valid 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

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**Interpretation:** The contractual provision in the Deed of Guarantee (Clause 25) effectively

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**Application:** The Corporate Debtor's acknowledgments of the outstanding debt in its balance

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## Parties

- **Judges:** ANUPINDER SINGH…; RAVINDRA CHATURVED…
- **Appellants:** Canara Ban…
- **Respondents:** M/s Tirupati…; Suraj Mal…
- **Other parties:** Jagmohan…; Adarsh…; +8 more
- **Advocates:** Karan G…; Riya…; +4 more

## Timeline

- **2007-01-05 — Corporate Debtor…**: M/s Tirupati Infraprojects Pvt. Ltd. was incorporated for the development of a five-star…
- **2008-07-23 — Undertaking by…**: An Undertaking was issued by the Respondent, allegedly excluding him from the management…

## 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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