# Canara Bank vs. Progressive Tradecom Private Limited

> NCLT judgment dated 2026-08-19. Citation: TCN-2026-NCLT-00887. Canara Bank, as a Financial Creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 19 Aug 2026
- **Citation:** TCN-2026-NCLT-00887
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/canara-bank-vs-progressive-tradecom-private-limited-6zj5t

## Summary

### Background

Canara Bank, as a Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), against Progressive Tradecom Private Limited, the Corporate Guarantor. The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP) for credit facilities availed by M/s. Juhi Industries Private Limited (Principal Borrower) from a consortium of lenders, including Canara Bank. The Principal Borrower's loan account was classified as a Non-Performing Asset (NPA) on 30.03.2018, and the corporate guarantee provided by Progressive Tradecom Private Limited was subsequently invoked due to the Principal Borrower's failure to repay the outstanding dues.

## Facts

Canara Bank, as a Financial Creditor, filed a petition under Section 7 of the IBC, 2016, against Progressive Tradecom Private Limited, the Corporate Guarantor.

The petition seeks initiation of Corporate Insolvency Resolution Process (CIRP) for credit facilities availed by M/s. Juhi Industries Private Limited (Principal Borrower).

Progressive Tradecom Private Limited is a private limited company incorporated on 26.02.2008.

M/s. Juhi Industries Private Limited availed credit facilities from a consortium of lenders including Bank of Baroda, Syndicate Bank (later merged with Canara Bank), and Canara Bank.

On 13.05.2014, the consortium sanctioned a Term Loan of Rs. 120.00 Crore to the Principal Borrower.

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## Issues and analysis

### Issue 1: Whether the liability arising from a corporate guarantee constitutes a "financial debt" …

**Ratio:** A liability in the form of a guarantee, including counter-indemnity obligations or any

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**Reasoning:** Section 5(8) of the IBC defines "financial debt" broadly to include various

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**Interpretation:** The statutory definition of financial debt explicitly includes obligations

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**Application:** The guarantee deeds executed by the Corporate Debtor in favour of the

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## Parties

- **Judges:** Shri. Labh…; Rekha Kantilal…
- **Appellants:** Canara…
- **Respondents:** Progressive…
- **Other parties:** Committee of…; Anishag…; +5 more
- **Advocates:** Aparajit…; Nabamita…

## Timeline

- **2008-02-26 — Incorporation of…**: Progressive Tradecom Private Limited (Corporate Debtor) was incorporated under the…
- **2014-05-13 — Term Loan San…**: A consortium of lenders sanctioned a Term Loan aggregating to Rs. 120.00 Crore to M/s.…

## 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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