# Krishkan Investment Private Limited vs. M/s. Utkal Steels Limited

> NCLT judgment dated 2026-06-17. Citation: TCN-2026-NCLT-00579. Krishkan Investment Private Limited (Financial Creditor) filed a Section 7 IBC petition against…

- **Court:** NCLT
- **Order date:** 17 Jun 2026
- **Citation:** TCN-2026-NCLT-00579
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/krishkan-investment-private-limited-vs-ms-utkal-steels-limited-lrocs

## Summary

### Background

Krishkan Investment Private Limited (Financial Creditor) filed a Section 7 IBC petition against M/s. Utkal Steels Limited (Corporate Debtor), a corporate guarantor for an MSME Business Loan Facility of Rs. 40 Crores sanctioned to M/s. Cubatics Prrocessors India Private Limited (Principal Borrower). The Corporate Debtor, along with other guarantors, executed a Deed of Guarantee. The Principal Borrower defaulted on repayments, leading to a recall notice and an outstanding debt of Rs. 4,16,51,899/- as of 15.04.2025. The petition was transferred from Cuttack Bench to Ahmedabad Bench as the Principal Borrower was already undergoing CIRP in Ahmedabad.

## Facts

Krishkan Investment Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Utkal Steels Limited (Corporate Debtor).

The petition was initially filed before the Cuttack Bench, NCLT, and subsequently transferred to the Ahmedabad Bench by order of the Principle Bench, NCLT, New Delhi, in view of Section 60(2) and (3) of IBC.

M/s. Utkal Steels Limited is a corporate guarantor for M/s. Cubatics Prrocessors India Private Limited (Principal Borrower), which is already under CIRP initiated by the Ahmedabad Bench vide order dated 25.03.2025.

The Financial Creditor is a Non-Banking Financial Company incorporated under the Companies Act, 1956, and registered under the RBI Act, 1934.

…

## Issues and analysis

### Issue 1: Whether there exists a financial debt …

**Ratio:** The existence of a financial debt and default by the Corporate Debtor, as a corporate

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**Reasoning:** The applicant provided a sanction letter, deed of guarantee, recall notice, and statement

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**Interpretation:** Section 7 of the IBC requires the establishment of a financial debt and a

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**Application:** The documents on record and the Corporate Debtor's own submissions confirm that

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Krishkan Investmen…
- **Respondents:** M/s. Utkal Steels…
- **Other parties:** Pankaj Bh…
- **Advocates:** Saumitra Chaturved…; Haripad M…; +2 more

## Timeline

- **2024-09-02 — Loan Sanction and…**: MSME Business Loan Facility of Rs. 4,00,00,000/- sanctioned to Principal Borrower; Deed…
- **2025-01-13 — Principal Debtor's…**: Principal Debtor vide letter showed its…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(2) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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