# South Canara District Central Co-operative Bank Ltd vs. M/s Mylar Sugars Ltd

> NCLT judgment dated 2026-08-17. Citation: TCN-2026-NCLT-00849. M/s. South Canara District Central Co-operative Bank Limited (Financial Creditor) filed a…

- **Court:** NCLT
- **Order date:** 17 Aug 2026
- **Citation:** TCN-2026-NCLT-00849
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/south-canara-district-central-co-operative-bank-ltd-vs-ms-mylar-sugars-ltd-r7mn5

## Summary

### Background

M/s. South Canara District Central Co-operative Bank Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s. Mylar Sugars Ltd. (Corporate Debtor) for defaulting on various loan facilities. The total outstanding debt as of April 30, 2026, was Rs.98,71,94,481/-, with dates of default ranging from January 6, 2026, to April 30, 2026. The loans were declared Non-Performing Assets (NPA) on April 6, 2026.

## Facts

M/s. South Canara District Central Co-operative Bank Limited (Petitioner/Financial Creditor) filed a petition under Section 7 of the IBC, 2016, against M/s. Mylar Sugars Ltd. (Respondent/Corporate Debtor).

The petition was filed on 04.06.2026, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

The Petitioner is a cooperative Banking institution incorporated in 1913 and registered under the Banking Regulations Act, 1949.

The Respondent is engaged in the business of manufacturing and selling sugar and its by-products, and generating power through cogeneration facilities.

The Respondent availed a consortium term loan facility of Rs.220 Crores in 2021 for expansion, with the Petitioner sanctioning and disbursing Rs.60 Crores.

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## Issues and analysis

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

**Ratio:** The Corporate Debtor unequivocally admitted the outstanding loan liabilities and default,

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**Reasoning:** The Respondent's reply-affidavit and financial statements acknowledged the debt and its

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**Interpretation:** Admission by the Corporate Debtor, coupled with robust documentary evidence,

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**Application:** The NCLT found that all three parameters (existence of debt, disbursal, and

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## Parties

- **Judges:** Sunil Kumar…; Radhakrishna…
- **Appellants:** M/s. South Canara…
- **Respondents:** M/s Mylar Sugars…
- **Other parties:** Committee of…; Gopalkrishna Bhat…; +3 more
- **Advocates:** Adith Jah…; Abhijit…; +1 more

## Timeline

- **1913 — Petitioner's Incorporati…**: South Canara District Central Co-operative Bank Limited incorporated under the provisions…
- **2021 — Consortium Term Loan…**: Respondent approached M/s. Karnataka State Co-operative Apex Bank Limited for a…

## 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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