# Canara Bank Limited vs. GVRMP Dharwad Ramanagar Tollway Private Limited

> NCLT judgment dated 2026-09-28. Citation: TCN-2026-NCLT-01097. Canara Bank Limited, as a Financial Creditor, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 28 Sept 2026
- **Citation:** TCN-2026-NCLT-01097
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/gvrmp-dharwad-ramanagar-tollway-private-limited-yc0u9

## Summary

### Background

Canara Bank Limited, as a Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against GVRMP Dharwad Ramanagar Tollway Private Limited, the Corporate Debtor. The Corporate Debtor, a Special Purpose Vehicle, had availed financial assistance from a consortium of lenders, led by Canara Bank, for a highway project. The debt obligations were to be serviced from toll revenue, but policy changes by the Government of Karnataka affected toll collection, leading to financial distress and default. The Corporate Debtor's account was classified as a Non-Performing Asset (NPA), and the Financial Creditor had previously obtained a recovery order from the Debt Recovery Tribunal

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## Facts

Canara Bank Limited (Applicant/Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The petition seeks to initiate Corporate Insolvency Resolution Process (CIRP) against GVRMP Dharwad Ramanagar Tollway Private Limited (Respondent/Corporate Debtor).

Canara Bank Limited was incorporated on 01.07.1906 and is represented by Mr. C. Siva, Chief Manager.

GVRMP Dharwad Ramanagar Tollway Private Limited was incorporated on 29.04.2010 as a Special Purpose Vehicle (SPV) for a highway project.

Canara Bank, as lead lender in a consortium (including Punjab National Bank, Corporation Bank, State Bank of India), provided financial assistance aggregating to Rs. 152.92 crores, with Canara Bank contributing Rs. 50 crores.

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## Issues and analysis

### Issue 1: Whether there is a financial debt owed by the …

**Ratio:** The existence of a financial debt is established by duly executed loan documentation,

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**Reasoning:** Canara Bank, as part of a consortium, provided financial assistance to the Corporate

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**Interpretation:** Financial debt under the IBC includes a debt along with interest, if any, which

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**Application:** The consortium loan provided by Canara Bank to GVRMP Dharwad Ramanagar Tollway

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## Parties

- **Judges:** Shri. JYOTI KUMAR…; SHRI. RAVICHANDRAN…
- **Appellants:** Canara Bank…
- **Respondents:** GVRMP Dharwad…
- **Other parties:** Punjab National…; Corporation Bank…; +2 more
- **Advocates:** Mr.N.P.Vija…; Mr.J.Rama…; +7 more

## Timeline

- **1906-07-01 — Incorporation of…**: Canara Bank Limited was…
- **2009-05-25 — Invitation…**: Government of Karnataka invited bids for the Dharwad-Alnavar-Ramnagar Road (SH-34)…

## 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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