# In the matter of Kanva Fashions Limited

> NCLT judgment dated 2023-07-20. Citation: TCN-2023-NCLT-05283. Canara Bank filed a petition under Section 7 of the IBC, 2016, to initiate Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 20 Jul 2023
- **Citation:** TCN-2023-NCLT-05283
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/kanva-fashions-limited-6eddf629

## Summary

### Background

Canara Bank filed a petition under Section 7 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kanva Fashions Limited, claiming a default of Rs. 114,38,26,770.26. The Corporate Debtor's account was classified as NPA on 31.07.2019.

## Facts

Canara Bank filed a petition under Section 7 of the IBC, 2016, against Kanva Fashions Limited.

The claimed default amount is Rs. 114,38,26,770.26 as on 31.03.2022.

The Corporate Debtor's account was classified as NPA on 31.07.2019.

The Financial Creditor had filed an original application before the DRT vide OA No 428/2020, which is pending.

The Corporate Debtor executed collateral security and Letter Evidencing deposit of Title Deed in favour of the Financial Creditor on 29.06.2016.

The properties of the company have been attached by the ED in Original Complaint No.1419 of 2021.

The date of default for various loan tranches is between 01.05.2019 and 31.05.2019.

The petition was filed on 18.08.2022.

…

## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** The Hon'ble Supreme Court's order in Suo Motu Writ Petition (C) No. 3 of 2020 excluded

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**Reasoning:** The Adjudicating Authority considered the clarification provided by the Petitioner Bank

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**Interpretation:** The exclusion of the period from 15.03.2020 to 28.02.2022 is applicable for

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**Application:** Since the petition was filed on 18.08.2022, and the date of default was between

…

## Parties

- **Judges:** Ramalingam…; Manoj Kumar…
- **Appellants:** Canara…
- **Respondents:** Kanva Fashions…
- **Other parties:** Madhugiri…
- **Advocates:** Santhosh S…

## Timeline

- **2022-08-18 — Filing of Company…**: The Company Petition was filed…
- **2019-07-31 — NPA Decla…**: The account of the Corporate Debtor…

## 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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