# The Canara Bank Limited vs. Globiz Exim Private Limited

> NCLT judgment dated 2026-07-08. Citation: TCN-2026-NCLT-00687. The Canara Bank Limited (Financial Creditor) filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 8 Jul 2026
- **Citation:** TCN-2026-NCLT-00687
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/the-canara-bank-limited-vs-globiz-exim-private-limited-4ivzn

## Summary

### Background

The Canara Bank Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Globiz Exim Private Limited (Corporate Debtor), which acted as a Corporate Guarantor for M/s Frost International Ltd. The Financial Creditor claimed a default amount of Rs. 7,42,06,10,813.68/- as on 31.03.2025, with the date of default stated as 29.01.2025. Mr. Mukesh Kumar Grover was proposed as the Interim Resolution Professional. The Corporate Debtor contended that the corporate guarantee was already invoked on 01.09.2018, making the current application, based on a subsequent notice dated 20.01.2025, time-barred.

## Facts

The Canara Bank Limited (Financial Creditor) filed C.P. (IB) No. 595 of 2025 under Section 7 of the IBC, 2016.

The application seeks initiation of CIRP against Global Exim Private Limited (Corporate Debtor).

Globiz Exim Private Limited is a Corporate Guarantor for M/s Frost International Ltd.

The amount claimed in default is Rs. 7,42,06,10,813.68/- as on 31.03.2025.

The date of default is stated to be 29.01.2025.

Mr. Mukesh Kumar Grover was proposed as the Interim Resolution Professional (IRP).

The application was affirmed by Mrs. Dolly Ahirwar, Manager of Canara Bank SAM Branch, Mumbai.

The Corporate Debtor availed credit facilities from Canara Bank and Syndicate Bank (now Canara Bank).

…

## Issues and analysis

### Issue 1: Whether the guarantee was …

**Ratio:** The notice dated 01.09.2018 was a valid notice of demand, effectively invoking the

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**Reasoning:** The Tribunal perused the notice dated 01.09.2018 (produced by the Corporate Debtor),

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**Interpretation:** A demand notice that explicitly names the guarantor and demands payment of

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**Application:** The 01.09.2018 notice served as the initial and legally operative invocation of

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** The Canara Bank…
- **Respondents:** Globiz Exim…
- **Other parties:** Mukesh Kumar…
- **Advocates:** Parimal P…; Tejas S…; +5 more

## Timeline

- **2014-05-12 — Execution of Guarantee…**: Deed of Guarantee, Supplemental Working Capital Consortium Agreement, Supplemental Joint…
- **2018-07-17 — NPA Classification of…**: The Principal Borrower's (M/s Frost International Ltd.) account was classified as…

## 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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