# Canara Bank vs. Ms. Citron Infraprojects Limited

> NCLT judgment dated 2026-07-21. Citation: TCN-2026-NCLT-00642. Canara Bank, as a Financial Creditor, filed an application under Section 7 of the IBC, 2016, to…

- **Court:** NCLT
- **Order date:** 21 Jul 2026
- **Citation:** TCN-2026-NCLT-00642
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/canara-bank-vs-ms-citron-infraprojects-limited-wo45m

## Summary

### Background

Canara Bank, as a Financial Creditor, filed an application under Section 7 of the IBC, 2016, 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 its Principal Borrower, M/s Shrivallabh Pittie Industries Ltd., from a consortium of banks, including Canara Bank. The Principal Borrower defaulted on 30.03.2022, and its accounts were classified as NPA on 28.06.2022. A recall notice was issued to the Corporate Debtor on 17.03.2023, demanding payment of Rs. 77.22 Crores, which remained unpaid. The Corporate Debtor contended that the application was barred by limitation, prematurely filed given a pending resolution plan

…

## Facts

Canara Bank, as a Financial Creditor, filed C.P. (IB) No.1225/MB/2025 on 05.11.2025 under Section 7 of the IBC, 2016, against M/s Citron Infraprojects Limited.

The application seeks to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Citron Infraprojects Limited, the Corporate Debtor.

The application was affirmed by Mr. Dheerendra Kumar Chaudhary, the authorised signatory of Canara Bank.

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

M/s Citron Infraprojects Limited (Corporate Debtor) executed Corporate Guarantees for credit facilities availed by M/s Shrivallabh Pittie Industries Ltd. (Principal Borrower).

…

## Issues and analysis

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

**Ratio:** The date of default for a corporate guarantor arises upon the invocation of the guarantee

…

**Reasoning:** The Corporate Debtor's default occurred on 25.03.2023, which is 7 days after the recall

…

**Interpretation:** The NCLAT's ruling in `State Bank of India Vs. Deepak Kumar Singhania`

…

**Application:** The Corporate Debtor's contention that the application is time-barred based on

…

## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Canara…
- **Respondents:** M/s Citron…; Citron Infraprojec…
- **Other parties:** Committee of…; Sunil Kumra…; +2 more
- **Advocates:** Bharat Sidd…; Roshan…; +5 more

## Timeline

- **2015-03-09 — Term Loan S…**: A Term Loan facility of Rs. 275 Crores was extended by the consortium to the Principal…
- **2015-10-05 — Board Reso…**: Board Resolution by the…

## 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-ms-citron-infraprojects-limited-wo45m