# Canara Bank (Erstwhile Syndicate Bank) vs. KGOC Terminals Private Limited

> NCLT judgment dated 2026-06-16. Citation: TCN-2026-NCLT-00581. Canara Bank (Financial Creditor) initiated Corporate Insolvency Resolution Process (CIRP)…

- **Court:** NCLT
- **Order date:** 16 Jun 2026
- **Citation:** TCN-2026-NCLT-00581
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-amaravati/canara-bank-erstwhile-syndicate-bank-vs-kgoc-terminals-private-limited-uczrr

## Summary

### Background

Canara Bank (Financial Creditor) initiated Corporate Insolvency Resolution Process (CIRP) against KGOC Terminals Private Limited (Corporate Debtor) under Section 7 of the IBC, 2016, due to a default in payment of dues amounting to Rs.64,69,67,541.47 as on 01.12.2020. The Corporate Debtor contested the petition, primarily arguing that the default fell within the exclusion period under Section 10A of the IBC and denying the financial debt. An initial One Time Settlement (OTS) proposal was made by the Corporate Debtor but rejected. Subsequently, an OTS was sanctioned by the Financial Creditor, leading to the withdrawal of the petition with liberty to refile. However, the Corporate Debtor failed to comply with the OTS terms, resulting in its cancellation and the Financial

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## Facts

Canara Bank (erstwhile Syndicate Bank) is the Financial Creditor.

KGOC Terminals Private Limited is the Corporate Debtor, incorporated on 28.06.2012.

The Financial Creditor filed a petition (CP (IB)/16/7/AMR/2023, renumbered as RCP (IBC)/1/7/AMR/2026) under Section 7 of IBC, 2016.

The petition sought to initiate CIRP against KGOC Terminals Private Limited for a default of Rs.64,69,67,541.47 as on 01.12.2020.

The Corporate Debtor approached the Financial Creditor for financial assistance and submitted a loan application on 07.04.2017.

A term loan of Rs.44.21 crores was sanctioned on 27.07.2017 for setting up 23 bulk liquid terminals.

The Financial Creditor made the first disbursement of Rs.1,98,00,000/- to the Corporate Debtor on 16.11.2017.

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## Issues and analysis

### Issue 1: Whether the Petition has been …

**Ratio:** An offer for One Time Settlement (OTS) by the Corporate Debtor, even if ultimately

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**Reasoning:** The initial default date was 15.02.2020. While the petition was e-filed on 24.02.2023,

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**Interpretation:** Section 18 of the Limitation Act, 1963, allows for a fresh period of limitation

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**Application:** Given the Corporate Debtor's repeated acknowledgments of debt through OTS

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## Parties

- **Judges:** KISHORE VEMULAPALL…; UMESH KUMAR…
- **Appellants:** Canara Bank…
- **Respondents:** KGOC Terminals…
- **Other parties:** Chunduru Govinda…; CH Govinda…; +4 more
- **Advocates:** J V L Bh…; T.S.B.V. Rama…; +2 more

## Timeline

- **2017-04-07 — Loan Appli…**: Corporate Debtor submitted a loan…
- **2017-07-27 — Loan San…**: Financial Creditor sanctioned a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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