# Canara Bank vs. Sri Krishna Stockist & Traders Pvt Ltd

> NCLT judgment dated 2026-10-14. Citation: TCN-2026-NCLT-01210. Canara Bank initiated Corporate Insolvency Resolution Process (CIRP) against Sri Krishna…

- **Court:** NCLT
- **Order date:** 14 Oct 2026
- **Citation:** TCN-2026-NCLT-01210
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-amaravati/sri-krishna-stockist-traders-private-limited-5z5lb

## Summary

### Background

Canara Bank initiated Corporate Insolvency Resolution Process (CIRP) against Sri Krishna Stockist & Traders Pvt Ltd. Mr. Chillale Rajesh was appointed as the Interim Resolution Professional (IRP) and subsequently as the Resolution Professional (RP). The Committee of Creditors (CoC) was constituted, and it was observed that the Corporate Debtor's assets were significantly diminished, with previous attempts to sell mortgaged assets under SARFAESI having failed. The CoC, with 100% voting share, resolved to liquidate the Corporate Debtor. Several Interlocutory Applications (IAs) were filed, including one for liquidation and another for the extension of the CIRP period.

## Facts

Canara Bank filed a Section 7 petition, leading to the admission of Corporate Insolvency Resolution Process (CIRP) against Sri Krishna Stockist & Traders Pvt Ltd on 20.08.2025.

Mr. Chillale Rajesh was appointed as the Interim Resolution Professional (IRP) for the Corporate Debtor.

A public announcement for claims was made on 23.08.2025, with a deadline of 03.09.2025.

Claims were received from Canara Bank, IFCI Limited, and IDBI Bank Limited as Secured Financial Creditors, and from the Income Tax Department as an Operational Creditor.

The Committee of Creditors (CoC) was constituted on 10.09.2025, comprising Canara Bank (69.8% voting share), IFCI Limited (19.0%), and IDBI Bank Limited (11.2%).

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## Issues and analysis

### Issue 1: Whether the application for extension of the Corporate Insolvency Resolution Process (CIRP) period …

**Ratio:** Section 12 of the Insolvency and Bankruptcy Code, 2016, and Regulation 40 of the IBBI

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**Reasoning:** The Adjudicating Authority observed that the CoC had already resolved to liquidate the

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**Interpretation:** The court interpreted Section 12 and Regulation 40 to mean that an extension of

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**Application:** The application IA (IBC)/398/2026, seeking an extension of the CIRP period by

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## Parties

- **Judges:** KISHORE VEMULAPALL…; UMESH KUMAR…
- **Appellants:** Chillale…; Canara…
- **Respondents:** Krishna Stockist…
- **Other parties:** IFCI Li…; IDBI Bank L…; +7 more
- **Advocates:** M. Maharshi…

## Timeline

- **2025-08-20 — CIRP Admi…**: Canara Bank's Section 7 petition admitted, Corporate Debtor entered CIRP, Mr. Chillale…
- **2025-08-23 — Public Annou…**: Public announcement made in…

## 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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