# Bank of India vs. NKR Engineers Private Limited

> NCLT judgment dated 2026-10-16. Citation: TCN-2026-NCLT-01267. Bank of India, the Financial Creditor, filed a Company Petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 16 Oct 2026
- **Citation:** TCN-2026-NCLT-01267
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/n-k-r-engineers-private-limited-ntoua

## Summary

### Background

Bank of India, the Financial Creditor, filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against NKR Engineers Private Limited, the Corporate Debtor. NKR Engineers Private Limited acted as a Corporate Guarantor for M/s Devashray Papers (India) LLP, the principal borrower. The principal borrower defaulted on credit facilities, leading to the invocation of the corporate guarantee dated 15.12.2022. The total outstanding financial debt claimed was Rs. 50,45,33,679.89 as of 31.08.2026. Despite proper service of notice, the Corporate Debtor did not appear or file a reply, resulting in ex-parte proceedings.

## Facts

Bank of India (Financial Creditor) filed a Company Petition under Section 7 of the IBC, 2016, against NKR Engineers Private Limited (Corporate Debtor).

The application seeks initiation of Corporate Insolvency Resolution Process (CIRP) against NKR Engineers Private Limited as a Corporate Guarantor for M/s Devashray Papers (India) LLP.

The Corporate Debtor defaulted on an outstanding financial debt of Rs. 50,45,33,679.89, including interest, as of 31.08.2026.

The principal borrower, M/s Devashray Papers (India) LLP, committed default in repayment of Cash Credit facility on 11.10.2024 and Term Loan facility on 23.10.2024.

The Corporate Debtor executed an unconditional, absolute, and irrevocable Deed of Corporate Guarantee dated 15.12.2022.

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## Issues and analysis

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

**Ratio:** The Adjudicating Authority must ascertain the existence of financial debt and the

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**Reasoning:** The Financial Creditor provided a corporate guarantee dated 15.12.2022, financing

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**Interpretation:** The documents on record, including the corporate guarantee and its invocation,

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**Application:** Based on the evidence, the Tribunal is satisfied that financial debt and

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## Parties

- **Judges:** SH. SHAMM…; SH. SANJEEV…
- **Appellants:** Bank of…
- **Respondents:** NKR Engineers…
- **Other parties:** Committee of…; Directors (of…; +2 more
- **Advocates:** Neetu Chat…; Aditya…; +1 more

## Timeline

- **2004-12-20 — Incorporation of…**: NKR Engineers Private Limited (Corporate Debtor) was incorporated under the Companies…
- **2022-12-15 — Execution of Corporate…**: The Corporate Debtor executed the Deed of Corporate Guarantee, stated to be…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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