# Canara Bank vs. PBA Infrastructure Limited

> NCLT judgment dated 2026-09-29. Citation: TCN-2026-NCLT-01173. Canara Bank, as the Financial Creditor, filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 29 Sept 2026
- **Citation:** TCN-2026-NCLT-01173
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/pba-infrastructure-limited-xm3o5

## Summary

### Background

Canara Bank, as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against PBA Infrastructure Limited, the Corporate Debtor. The application was based on an alleged default in repayment of a financial debt amounting to INR 1126,41,34,714. The date of default was stated as March 28, 2012, following the failure of a Corporate Debt Restructuring (CDR) package. The Corporate Debtor had been availing banking facilities since 1974, and a Working Capital Consortium Agreement was executed in 2003, with subsequent credit facilities and security arrangements. Despite a CDR package approved in 2012, the Corporate Debtor failed to comply with its conditions,

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## Facts

Canara Bank (Financial Creditor) filed C.P. (IB) No.297/MB/2026 (Application) on 18.03.2026, under Section 7 of the IBC, 2016, against PBA Infrastructure Limited (Corporate Debtor).

The application seeks to initiate Corporate Insolvency Resolution Process (CIRP) for an alleged default in repayment of financial debt of Rs. 1126,41,34,714.

The date of default as per Part IV of the Application and Additional Affidavit dated 10.04.2026 is 28.03.2012.

Mr. Vijay Pitambar Lulla was proposed as the Interim Resolution Professional (IRP).

PBA Infrastructure Limited (formerly M/s. Prakash Building Associates Limited) was incorporated on July 31, 1974.

Canara Bank has been providing banking facilities to the Corporate Debtor since 1974.

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## Issues and analysis

### Issue 1: Whether the application filed by Canara Bank under Section 7 of the IBC, 2016, is barred by …

**Ratio:** Acknowledgment of debt through revival letters and One-Time Settlement (OTS) proposals

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**Reasoning:** The Financial Creditor provided a timeline of revival letters and multiple OTS proposals

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**Interpretation:** The 'date of default' for the purpose of limitation under IBC can be

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**Application:** The Tribunal found that the application, filed on 18.03.2026, was within the

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Canara…
- **Respondents:** PBA Infrastructure…
- **Other parties:** Committee of…; Ramlal Wa…; +8 more
- **Advocates:** Chetan Ka…; Srideepa Bhattachh…; +7 more

## Timeline

- **1974-07-31 — Incorporation of…**: PBA Infrastructure Limited (formerly M/s. Prakash Building Associates Limited) was…
- **2003-09-10 — Working Capital…**: A WCA was executed between the Corporate…

## 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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