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Informative

NCLT admits CIRP Application of Canara Bank Citing Default payment of a debt amount beyond Rs, 1...

Update / Judgement Date

14 Sept 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

BankingInsolvency & Bankruptcy Code

The NCLT has "admitted a CIRP application of Canara Bank," citing "default payment of a debt amount beyond ₹1 crore." This is a significant ruling that provides clarity on the legal standing of claims made by the EPFO during the corporate insolvency resolution process. The court's decision, which is a significant victory for the government, was made on the grounds that the company's claim was not supported by evidence. The ruling clarifies that a company can be held responsible for the misdeeds of another person.