# In the matter of Rajender Kumar Pahwa vs. Canara Bank and Ors.

> Read the full IBC case summary for In the matter of Rajender Kumar Pahwa vs. Canara Bank and Ors.. NCLAT judgment dated 2025-09-03. Citation:…

- **Court:** NCLAT
- **Order date:** 3 Sept 2025
- **Citation:** TCN-2025-NCLAT-00493
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajender-kumar-pahwa-vs-canara-bank-and-ors-5697b2d1

## Summary

### Background

The appeal was filed by the suspended director of the Corporate Debtor (CD) under Section 61 of the IBC, challenging an order passed by the Adjudicating Authority that initiated the Corporate Insolvency Resolution Process (CIRP) against the CD.

## Facts

The Corporate Debtor (CD), Good Luck Carbon Pvt. Ltd., initially incorporated as M/s Good Luck Impex Pvt. Ltd. in 1993, changed its name in 2007. The company operates a unit in Village Jitwal Kalan, District Sangrur, Punjab, manufacturing various grades of furnace blacks for rubber products and plastics. In the usual course of business, the CD sought credit facilities from various banks under a consortium lending arrangement between 2011 and 2013, diligently meeting its repayment obligations during this period.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in initiating CIRP against the Corporate Debtor despite…

**Ratio:** The pendency of an OTS proposal, particularly if conditional or not approved by all…

**Reasoning:** The NCLAT reasoned that the existence of a legally payable debt and default is sufficient…

**Interpretation:** The court interpreted Section 7 of the IBC as primarily requiring the…

**Application:** In this case, the Corporate Debtor admitted to taking loans and defaulting on…

## Parties

- **Judges:** Mohd. Faiz Alam…
- **Advocates:** For the appellant:…; Lavanya P…; +10 more

## Timeline

- **1993 — Incorporation of…**: The Corporate Debtor was incorporated…
- **2007 — Name Cha…**: The name of the Corporate Debtor was…

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