# In the matter of SITARAM PRINTS PVT LTD

> NCLT judgment dated 2025-09-02. Citation: TCN-2025-NCLT-01326. Canara Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 2 Sept 2025
- **Citation:** TCN-2025-NCLT-01326
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/sitaram-prints-pvt-ltd-f649c6f3

## Summary

### Background

Canara Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Sitaram Prints Private Limited, the Corporate Guarantor, for initiation of Corporate Insolvency Resolution Process (CIRP) due to a default on a financial debt amounting to Rs. 15,99,67,298.36 as on 30.06.2020, which later updated to Rs.28,83,31,160 as on 01.11.2024.

## Facts

Canara Bank, the Financial Creditor, filed a petition under Section 7 of the IBC against Sitaram Prints Private Limited, the Corporate Guarantor.

The Corporate Guarantor provided a corporate guarantee to secure credit facilities granted to Sumeet Industries Limited, the Principal Borrower.

Sumeet Industries Limited defaulted on 24.01.2019, and its account was classified as NPA on 24.04.2019.

The Financial Creditor issued a demand notice under Section 13(2) of the SARFAESI Act, 2002, on 11.11.2019 to the Principal Borrower and the Corporate Guarantor.

The Corporate Guarantor submitted an OTS proposal of Rs.8.00 Crores on 21.03.2024.

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is …

**Ratio:** Section 60(2) of the

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**Reasoning:** The proceedings against the Corporate Guarantor are maintainable and within jurisdiction

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**Interpretation:** Section 60(2) of the IBC allows for proceedings against a corporate guarantor

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**Application:** The Tribunal determined that the application against Sitaram Prints Private

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## Parties

- **Judges:** SH. SHAMM…; SH. SANJEEV…
- **Appellants:** Canara…
- **Respondents:** Sitaram Prints…
- **Other parties:** Satyendra Prasad…
- **Advocates:** Sunil K…

## Timeline

- **2014-03-15 — Sanction…**: Date of Sanction letter for Non-Fund-Based Working Capital Facility of Rs. 15.00 Crores…
- **2019-01-24 — Default…**: Date of default by…

## 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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