# Canara Bank vs. M/s. RMN Infrastructures Ltd

> NCLT judgment dated 2026-09-28. Citation: TCN-2026-NCLT-01174. Canara Bank, as a financial creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 28 Sept 2026
- **Citation:** TCN-2026-NCLT-01174
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/r-m-n-infrastructures-limited-jgysh

## Summary

### Background

Canara Bank, as a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), against M/s. RMN Infrastructures Ltd (Corporate Debtor/Guarantor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had executed a corporate guarantee for a loan provided by a consortium of banks, led by Canara Bank, to GVRMP Dharwad Ramanagar Tollway Private Limited (the principal borrower). The principal borrower defaulted on its repayments, leading to the loan being classified as a Non-Performing Asset (NPA) on September 29, 2016. Canara Bank pursued recovery actions through the Debt Recovery Tribunal-II (DRT-II), Chennai, obtaining an order on April 21, 2021, and a Recovery Certificate on February 8, 2022,

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## Facts

Canara Bank, as a financial creditor, filed a petition under Section 7 of the IBC, 2016, against M/s. RMN Infrastructures Ltd (Corporate Debtor/Guarantor).

The petition seeks to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

Canara Bank, along with a consortium of banks, provided financial assistance to GVRMP Dharwad Ramanagar Tollway Private Limited (the principal borrower).

M/s. RMN Infrastructures Ltd executed a Deed of Guarantee on March 16, 2011, acting as a Corporate Guarantor for the principal borrower's loan.

The principal borrower defaulted on loan repayments, leading to the loan being classified as a Non-Performing Asset (NPA) on September 29, 2016.

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## Issues and analysis

### Issue 1: Whether the National Company Law Tribunal, Chennai Bench, has territorial jurisdiction to entertain …

**Ratio:** Section 60(2) of the IBC, 2016, provides that where insolvency resolution or liquidation

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**Reasoning:** The NCLAT in S. Vasudevan v. IDBI Trusteeship Services Ltd., 2025 SCC OnLine NCLAT 1259,

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**Interpretation:** Section 60(2) is interpreted broadly to cover cases where a petition against

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**Application:** Since a Section 7 petition against the principal borrower (GVRMP Dharwad

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## Parties

- **Judges:** Shri. JYOTI KUMAR…; SHRI. RAVICHANDRAN…
- **Appellants:** Canara…
- **Respondents:** M/s. RMN Infrastru…
- **Other parties:** Solvenza Advisory…; Prashant…
- **Advocates:** J. Raman…; R.R. Pr…; +7 more

## Timeline

- **2011-03-16 — Corporate Guarantee…**: M/s. RMN Infrastructures Ltd executed a Deed of Guarantee, guaranteeing repayment for the…
- **2016-09-29 — NPA Classif…**: The loan account of the principal borrower, GVRMP Dharwad Ramanagar Tollway Private…

## 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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