Archive · 24 Jul 2026
NCLT Admits Insolvency Plea Against Citron Infraprojects
The National Company Law Tribunal (NCLT) has accepted a request to start insolvency proceedings against Citron Infraprojects Limited.
This request was made by Canara Bank, which said Citron Infraprojects owed ₹119.64 crore.
The money was part of a guarantee Citron Infraprojects gave for loans to another company, Shrivallabh Pittie Industries Ltd.
Citron Infraprojects argued that the request was too late and that the main borrower was already in insolvency proceedings.
However, the NCLT disagreed and said the request was valid.
The tribunal also said that insolvency proceedings can happen at the same time for both the main borrower and the guarantor, with rules to prevent double recovery.
The NCLT decided to start the insolvency process for Citron Infraprojects.
NCLT admitted insolvency plea against Citron Infraprojects over ₹119.64 crore default.
Canara Bank filed the petition under Section 7 of the IBC for default on corporate guarantee.
Citron Infraprojects opposed the plea, arguing limitation and pendency of CIRP against the principal borrower.
NCLT rejected the objections, holding the petition within the limitation period and allowing simultaneous proceedings.
The tribunal found that the objective of the IBC is resolution, not just debt recovery.
- Who
- Canara Bank and Citron Infraprojects Limited
- What
- Insolvency petition admitted against Citron Infraprojects over ₹119.64 crore default
- When
- Petition filed on November 5, 2025; default date March 25, 2023
- Where
- Mumbai
- Why
- Canara Bank claimed default on corporate guarantee executed by Citron Infraprojects for loans to Shrivallabh Pittie Industries Ltd.
Canara Bank
Citron Infraprojects
Limitation and Maintainability
Canara Bank
The petition is within the limitation period and maintainable as the corporate guarantee was invoked on March 17, 2023, and the petition was filed on November 5, 2025.
Citron Infraprojects
The petition is barred by limitation and is premature as the principal borrower is already undergoing CIRP.
Simultaneous Proceedings
Canara Bank
Simultaneous proceedings against the guarantor do not bar insolvency proceedings and safeguards under the IBC prevent double recovery.
Citron Infraprojects
Simultaneous proceedings against the guarantor could result in double recovery by lenders.
Objective of Insolvency Petition
Canara Bank
The objective is the resolution of the corporate debtor, and recovery is incidental to the insolvency process.
Citron Infraprojects
The petition is intended solely for debt recovery.
- Default Amount
- ₹119.64 crore
- Principal Borrower
- Shrivallabh Pittie Industries Ltd.
- Date of Default
- March 25, 2023
- Date of Petition Filing
- November 5, 2025
- Section Under Which Petition Filed
- Section 7 of the Insolvency and Bankruptcy Code (IBC)
- Tribunal's Decision
- Admitted the insolvency petition against Citron Infraprojects Limited