# Canara Bank vs. Ms. Citron Infraprojects Limited

> NCLT judgment dated 2026-07-21. Citation: TCN-2026-NCLT-00644. Canara Bank, a Financial Creditor, filed an application under Section 7 of the IBC to initiate…

- **Court:** NCLT
- **Order date:** 21 Jul 2026
- **Citation:** TCN-2026-NCLT-00644
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/canara-bank-vs-ms-citron-infraprojects-limited-vncdf

## Summary

### Background

Canara Bank, a Financial Creditor, filed an application under Section 7 of the IBC to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Citron Infraprojects Limited, the Corporate Debtor. The Corporate Debtor had provided corporate guarantees for credit facilities availed by the Principal Borrower, M/s Shrivallabh Pittie Industries Ltd. The total default amount claimed was Rs. 119,64,40,125.82.

## Facts

Canara Bank, the Financial Creditor, filed C.P. (IB) No.1225/MB/2025 under Section 7 of the IBC on 05.11.2025.

The application was filed for initiating Corporate Insolvency Resolution Process (CIRP) against M/s Citron Infraprojects Limited, the Corporate Debtor.

The application was affirmed by Mr. Dheerendra Kumar Chaudhary, authorised signatory of Canara Bank, vide a Letter of Authority dated 02.09.2025.

The amount claimed to be in default is Rs.119,64,40,125.82 as of 31.08.2025.

The Principal Borrower, M/s Shrivallabh Pittie Industries Ltd., is a company incorporated under the Companies Act, 2013.

The Corporate Debtor, M/s Citron Infraprojects Ltd., executed Corporate Guarantees in favour of Canara Bank and other consortium lenders.

…

## Issues and analysis

### Issue 1: Whether the application filed by …

**Ratio:** The date of default for the Corporate Guarantor is distinct from the Principal Borrower,

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**Reasoning:** The Corporate Debtor's default occurred on 25.03.2023 (seven days after the recall notice

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**Interpretation:** The limitation period for an application against a corporate guarantor under

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**Application:** The NCLT rejected the Corporate Debtor's contention that the petition was

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Canara…
- **Respondents:** Citron Infraprojec…
- **Other parties:** Sunil Kumra…; Promoters of…; +1 more
- **Advocates:** Bharat Sidd…; Roshan…; +5 more

## Timeline

- **2015-03-09 — Term Loan San…**: A Term Loan facility of Rs. 275 Crores was extended by the consortium, with Canara Bank's…
- **2015-10-12 — Corporate Guarantee…**: A Deed of Corporate Guarantee was…

## 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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