# The Canara Bank Limited vs. HK Toll Road Private Limited

> NCLT judgment dated 2026-06-11. Citation: TCN-2026-NCLT-00569. The Canara Bank Limited, acting as the Financial Creditor (FC), filed a Company Petition (C.P.…

- **Court:** NCLT
- **Order date:** 11 Jun 2026
- **Citation:** TCN-2026-NCLT-00569
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/the-canara-bank-limited-vs-hk-toll-road-private-limited-p02rv

## Summary

### Background

The Canara Bank Limited, acting as the Financial Creditor (FC), filed a Company Petition (C.P. (IB) No. 522 of 2025) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against HK Toll Road Private Limited, the Corporate Debtor (CD). The FC claimed a default amount of Rs. 282,59,57,619.45/- as of February 28, 2025, with the date of default being December 31, 2023, and the CD's account classified as a Non-Performing Asset (NPA) on March 30, 2024. The CD, a Special Purpose Vehicle (SPV) for a highway project, contended that its financial distress and default were solely due to the unilateral and wrongful termination of its Concession Agreement (CA) by the National Highways Authority of India

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## Facts

The Canara Bank Limited (Financial Creditor) filed C.P. (IB) No. 522 of 2025 under Section 7 of the IBC against HK Toll Road Private Limited (Corporate Debtor).

The total amount claimed in default is Rs. 282,59,57,619.45/- as on 28.02.2025, comprising principal of Rs. 234,22,72,778/- and interest of Rs. 48,36,84,841.45/-.

The date of default is stated as 31.12.2023, and the CD's account was classified as NPA on 30.03.2024.

Mr. Sanjay Kumar Mishra was proposed as the Interim Resolution Professional (IRP).

HK Toll Road Private Limited (CD) is a Special Purpose Vehicle (SPV) promoted by Reliance Infrastructure Ltd. for a highway project.

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by Canara Bank under Section 7 of the IBC was instituted …

**Ratio:** Mere filing of a Section 7 application by a financial creditor, when debt and default

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**Reasoning:** The NCLT referred to its own judgment in Canara Bank v. Supreme Best Value Kolhapur,

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**Interpretation:** Section 65 of the IBC aims to prevent abuse of the insolvency process. It

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**Application:** The NCLT found no cogent material to establish fraudulent or malicious

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## Parties

- **Judges:** SAMEER KAKAR…; NILESH SHARMA…
- **Appellants:** The Canara Bank…
- **Respondents:** HK Toll Road…
- **Other parties:** Committee of…; Punjab National…; +4 more
- **Advocates:** Yash Dh…; Niyati Me…; +3 more

## Timeline

- **2010-07-02 — Concession Agreement…**: The Concession Agreement was dated, under which NHAI awarded a contract to the Corporate…
- **2011-03-14 — Sanction Lette…**: Canara Bank issued a Sanction letter for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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