# Canara Bank vs. Elegant Forge and Equipment Private Limited

> NCLT judgment dated 2025-07-11. Citation: TCN-2025-NCLT-00775. Canara Bank filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 11 Jul 2025
- **Citation:** TCN-2025-NCLT-00775
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/canara-bank-vs-elegant-forge-and-equipment-private-limited-481719ab

## Summary

### Background

Canara Bank filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Elegant Forge & Equipments Private Limited due to a default amount of Rs. 81,60,32,532.77/- with the date of default being 31.07.2021.

## Facts

Canara Bank filed a petition under Section 7 of the IBC to initiate CIRP against M/s Elegant Forge & Equipments Private Limited.

The claimed default amount is Rs. 81,60,32,532.77/- with the date of default being 31.07.2021.

The Corporate Debtor's account was declared NPA on 30.11.2021.

The Corporate Debtor argued that the account became irregular from 20.03.2021, falling within the Section 10A period.

Canara Bank, South Indian Bank, and Bank of Maharashtra were part of a consortium that provided credit facilities to the Corporate Debtor.

The Corporate Debtor filed an Interlocutory Application No. 1331/2025 challenging the maintainability of the Company Petition No. 1022/2024 under Section 60(5) read with Section 10A of IBC, 2016.

…

## Issues and analysis

### Issue 1: Whether the present petition is …

**Ratio:** Section 10A bars initiation of CIRP only for defaults that occur during the suspension

…

**Reasoning:** The Hon'ble Supreme Court in Ramesh Kymal vs. Siemens Gamesa Renewable Power Pvt. Ltd.

…

**Interpretation:** The date of default is crucial in

…

**Application:** The Tribunal determined that the date of default was 31.07.2021 or 30.08.2021

…

## Parties

- **Judges:** Sushil Mahadeorao…; Charanjeet Singh…
- **Appellants:** Canara…; Elegant Forge &…
- **Respondents:** M/s Elegant Forge…
- **Other parties:** Jayshree L…; Manilal L…; +1 more
- **Advocates:** Mily Gh…; Manoj H…

## Timeline

- **2018-10-06 — Sanction…**: The Petitioner (Canara Bank) issued a sanction letter dated 06.10.2018, granting…
- **2019-01-18 — Sanction…**: The South Indian Bank Limited granted a loan to the Respondent as Cash Credit Overdraft…

## 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-mumbai/canara-bank-vs-elegant-forge-and-equipment-private-limited-481719ab