The Mumbai Bench of the National Company Law Tribunal (NCLT) has dismissed a insolvency application filed by Canara Bank Ltd. against Globiz Exim Private Ltd. and held that a corporate guarantor cannot be subjected to the Corporate Insolvency Resolution Process (CIRP) through a fresh demand notice after the limitation period has already expired.
The Canara Bank initiated insolvency proceedings against Globiz Exim Pvt. Ltd., the corporate guarantor of Frost International Ltd., claiming a default of over ₹742.06 crore. The bank contended that it had invoked the corporate guarantee through a demand notice dated 20 January 2025 after the principal borrower defaulted on consortium credit facilities. The principal borrower…