# In the matter of Candid Industries Limited

> NCLT judgment dated 2026-04-02. Citation: TCN-2026-NCLT-00323. Central Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 2 Apr 2026
- **Citation:** TCN-2026-NCLT-00323
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/candid-industries-limited-6a610e5b

## Summary

### Background

Central Bank of India filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Candid Industries Limited, the Corporate Debtor.

## Facts

Central Bank of India, a financial creditor, filed CP IB 109 CHE 2025 on 22.04.2025 under Section 7 of the Insolvency and Bankruptcy Code, 2016.

Candid Industries Limited (Future Tech Industries Limited) acted as a Corporate Guarantor for credit facilities extended to Best & Crompton Engineering Projects Limited.

The petitioner bank sanctioned working capital limits to the Principal Debtor for Rs. 120 crores on 30.11.2010.

The amount in default as per Demand Notice issued by DRT on 14.08.2018 was Rs.507,22,85,234.93.

The amount due to petitioner Central Bank of India as on 08.07.2024 was Rs. 318,89,95,472/-.

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## Issues and analysis

### Issue 1: Whether the petition filed by Central Bank of India under Section 7 of the IBC against Candid …

**Ratio:** The liability of the guarantor is co-extensive with that of the principal borrower, as

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**Reasoning:** The Principal Corporate Debtor acknowledged its liability in the Balance sheets upto

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**Interpretation:** The Adjudicating Authority interpreted Section 7 of the IBC and Section 128 of

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**Application:** The Adjudicating Authority applied the legal principles to the facts of the

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Central Bank of…
- **Respondents:** Candid Industries…
- **Other parties:** V. Dura…
- **Advocates:** Clara Heps…; Ashlin Ch…; +1 more

## Timeline

- **30.11.2010 — Sanction of Working…**: Petitioner sanctioned various working capital limits to the Principal Debtor for Rs. 120…
- **14.08.2018 — Demand Notice…**: Demand Notice issued by DRT…

## 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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