Jayesh Vinodrai Valia vs Canara Bank & Ors

NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI Comp. App. (AT) (Ins) No. 909 of 2026 IN THE MATTER OF: Jayesh Vinodrai Valia ...Appellant(s)

Versus Canara Bank & Anr. ...Respondent(s)

Present: For Appellant(s) : Mr. Krishnendu Datta, Sr. Advocate with Mr. Anuj P. Agarwala and Ms. Niharika Sharma, Advocates.

For Respondent(s) : Mr. Ashok Kr. Mishra, Advocate for R1. Ms. Uma Chatterjee and Mr. Yahya Batatawala, Advocates for R2. ORDER

(Hybrid Mode)

20.05.2026 Heard Ld. Counsel for the parties.

2. This Appeal has been filed against the order dated 08.05.2026 by which

Adjudicating Authority has appointed Resolution Professional under Section

95 application filed by the Canara Bank.

3. Ld. Counsel for the Appellant submitted that very basis of the order of

the Adjudicating Authority stated in Para-2 and 3 are as follows:

"2. Ld. Counsel appearing for the Financial Creditor invited the attention of this Bench to the Demand Notice dated 17.11.2023 in Form B invoking the Guarantee against the Respondent/Guarantor and the proof of delivery of the Demand Notice.

3. The Petition for initiating Insolvency Resolution Process against the Personal Guarantor of the Corporate Debtor is complete in all respect. Therefore, this Bench is of the opinion that Resolution Professional is to be appointed in this case."

4. It is submitted that the law is well settled that the Demand Notice under

Form-B cannot be notice for invocation of Guarantee. Ld. Counsel for the Bank submitted that there were relevant materials with the Bank to prove

that guarantee has been correctly invoked and Bank may be permitted to file

additional affidavit, bringing the relevant materials before the Adjudicating

Authority under Section 95 application.

5. Ld. Counsel for the Resolution Professional and submit that RP's has

to submit a report under Section 99. In the facts of the present case, we are

of the view that ends of justice be served asking the Adjudicating Authority to

pass a fresh order for appointing of the Resolution Professional by setting

aside of the order dated 08.05.2026. We grant liberty to Ld. Counsel for the

Bank to file additional affidavit within two weeks. The Adjudicating Authority

to pass a fresh order in accordance with law.

6. We make it clear that we are not expressing any opinion on the merits

of case either of the parties and all contentions are left open. The Adjudicating

Authority shall also take into consideration the Judgment of the Hon'ble

Supreme Court in Dilip B. Jiwrajka v. Union of India, while taking the decision

for appointing the Resolution Professional.

7. The Appeal is disposed of.

[Justice Ashok Bhushan] Chairperson

[Indevar Pandey] Member (Technical) Abhishek/Manu

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