# In the matter of PRAYAG POLYTECH PRIVATE LIMITED (TRANSFER FROM DELHI TO RAJASTHAN)

> NCLT judgment dated 2026-02-10. Citation: TCN-2026-NCLT-00124. Canara Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to…

- **Court:** NCLT
- **Order date:** 10 Feb 2026
- **Citation:** TCN-2026-NCLT-00124
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-jaipur/prayag-polytech-private-limited-transfer-from-delhi-to-rajasthan-4495d4e6

## Summary

### Background

Canara Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S Prayag Polytech Private Limited due to default in repayment of a financial debt amounting to Rs. 34,14,92,212.84 as on 30.06.2024.

## Facts

Canara Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/S Prayag Polytech Private Limited.

The Corporate Debtor allegedly defaulted on a financial debt of Rs. 34,14,92,212.84 as on 30.06.2024.

The Corporate Debtor opposed the admission of the petition, claiming that all facilities were duly discharged and the bank issued NOCs.

The Corporate Debtor also raised objections regarding limitation, non-compliance with mandatory IBC requirements, and contradictions in the proof of default.

The Adjudicating Authority found that the Financial Creditor had established a prima facie case of financial debt and default.

The Adjudicating Authority admitted the application and initiated CIRP against the Corporate Debtor.

…

## Issues and analysis

### Issue 1: Whether a financial …

**Ratio:** The Code defines 'financial debt' widely and includes money borrowed against payment of

…

**Reasoning:** The petition pleads that the Corporate Debtor availed various credit facilities from the

…

**Interpretation:** A bank's sanction documents, renewal letters, and facility documentation

…

**Application:** The Adjudicating Authority found that the relationship was that of bank credit

…

## Parties

- **Judges:** Reeta K…; Kavita Bha…
- **Appellants:** Canara…
- **Respondents:** M/s Prayag…
- **Other parties:** Rishabh Chand…
- **Advocates:** Hitesh S…; Anju…; +5 more

## Timeline

- **2024-06-30 — Default…**: The outstanding amount claimed is Rs.…
- **2019-10-03 — NPA Date…**: The account slipped…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-jaipur/prayag-polytech-private-limited-transfer-from-delhi-to-rajasthan-4495d4e6