# Canara Bank & Authum Investment & Infrastructure Ltd. vs. Bhavesh Mansukhbai Rathod & Ors.

> NCLAT judgment dated 17 Apr 2026. Citation: TCN-2026-NCLAT-00025. This case involves two appeals (Comp. App. (AT) (Ins.) No. 556 of 2025 filed by Canara Bank…

- **Court:** NCLAT
- **Order date:** 17 Apr 2026
- **Citation:** TCN-2026-NCLAT-00025
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/canara-bank-authum-investment-infrastructure-ltd-vs-bhavesh-mansukhbai-rathod-or-4cuq5

## Summary

### Background

This case involves two appeals (Comp. App. (AT) (Ins.) No. 556 of 2025 filed by Canara Bank and Comp. App. (AT) (Ins.) No. 588 of 2025 filed by Authum Investment & Infrastructure Ltd.) against a common order dated 04.03.2025 passed by the National Company Law Tribunal (NCLT), Mumbai Bench – I. The NCLT order partly allowed I.A. No. 595/2025. Canara Bank’s appeal challenges the NCLT’s refusal to exercise jurisdiction under Section 65 of the Insolvency & Bankruptcy Code, 2016 (IBC) to set aside the Corporate Insolvency Resolution Process (CIRP) admission order. Authum Investment & Infrastructure Ltd.’s appeal challenges the NCLT’s direction to the Resolution Professional (RP) to conduct a Forensic Audit at the cost of Canara Bank. The underlying CIRP was

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## Facts

Carnival Techno Park Pvt. Ltd. (Corporate Debtor) requested financial assistance from Reliance Capital Ltd. on 20.01.2017.

Reliance Capital Ltd. sanctioned Rs.75 crore to the corporate debtor on 16.01.2017, followed by a Facility Agreement on 20.01.2017.

The loan facility carried an interest rate of 15% p.a., with a default interest rate of 36% p.a. compounded monthly.

The financial assistance was secured by a charge over intercorporate deposit receivables of Rs.175 crore from Advantage Overseas Pvt. Ltd.

Under a Bombay High Court order dated 06.12.2016, dues payable by the corporate debtor to Reliance Capital Ltd. were transferred and vested in Reliance Commercial Finance Ltd. (RCFL).

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in refusing to grant relief to Canara Bank under Section …

**Ratio:** For Section 65 of the IBC to be invoked to terminate CIRP proceedings or recall an

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**Reasoning:** The Adjudicating Authority had already considered and rejected the corporate debtor's

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**Interpretation:** Section 65 of the IBC provides a stringent mechanism to prevent abuse of the

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**Application:** Canara Bank's application under Section 65 primarily reiterated arguments

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Canara…; Authum Investment…
- **Respondents:** Carnival Techno…; Bhavesh Mansukhbha…
- **Other parties:** Insolvency and…; Corporate…; +9 more

## Timeline

- **2016-12-06 — Bombay High Co…**: Order by the Bombay High Court transferring dues payable by the corporate debtor to…
- **2017-01-16 — Sanction Lette…**: Reliance Capital Ltd. issued a sanction letter…

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