# The Canara Bank Limited vs. Shrivallabh Pittie Enterprises Private Limited

> NCLT judgment dated 2026-09-03. Citation: TCN-2026-NCLT-00925. The Canara Bank Limited, a Financial Creditor, filed an application under Section 7 of the IBC…

- **Court:** NCLT
- **Order date:** 3 Sept 2026
- **Citation:** TCN-2026-NCLT-00925
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/the-canara-bank-limited-vs-shrivallabh-pittie-enterprises-private-limited-ye4hv

## Summary

### Background

The Canara Bank Limited, a Financial Creditor, filed an application under Section 7 of the IBC against Shrivallabh Pittie Enterprises Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had provided a corporate guarantee for credit facilities availed by its Principal Borrower, M/s Shrivallabh Pittie South West Industries Limited. The Principal Borrower defaulted, leading to its account being classified as Non-Performing Asset (NPA). The Financial Creditor invoked the corporate guarantee, demanding Rs. 43,80,97,048.70, but the Corporate Debtor failed to pay, resulting in a default date of 13.03.2023. The application was filed on 09.03.2026.

## Facts

C.P. (IB) No.263/MB/2026 (Application) was filed on 09.03.2026 by Canara Bank, the Financial Creditor (FC), under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC).

The application seeks to initiate Corporate Insolvency Resolution Process (CIRP) in respect of M/s Shrivallabh Pittie Enterprises Private Limited, the Corporate Debtor.

The Application was affirmed by Mr. Dheerendra Kumar Chaudhary, authorised signatory of the Applicant, authorized vide letter of Authority dated 02.09.2025.

As per Part IV of the Application, the amount claimed to be in default is Rs.75,93,98,670.05/-.

As per Part IV of the Application, the date of default is stated as 13.03.2023.

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## Issues and analysis

### Issue 1: Whether there exists a financial debt due and payable by the Corporate Debtor to the Financial …

**Ratio:** A financial debt exists when a corporate guarantee is executed for a principal borrower's

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**Reasoning:** The Financial Creditor provided evidence including Sanction Letters, Consortium

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**Interpretation:** The execution of a corporate guarantee creates a financial debt for the

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**Application:** The Corporate Debtor executed a Corporate Guarantee for the Principal

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** The Canara Bank…
- **Respondents:** Shrivallabh…
- **Other parties:** Sunil Kumra…
- **Advocates:** Bharat Sidd…; Roshan…; +1 more

## Timeline

- **2018-01-16 — Sanction Lette…**: Financial Creditor sanctioned Working…
- **2018-01-18 — Board Reso…**: Copy of Board…

## 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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