Case Details

Case Name: Canara Bank vs Smt. Mithlesh Mishra

Court/Authority: National Company Law Tribunal Allahabad Bench Prayagraj

Case Number: Special Bench Item No. 3 (Application under Section 123 read with Section 115(2) & 121 of IBC, 2016)

Date of Order: 25.05.2026

Period of Violation/Dispute: Default occurred with NPA classification on 29.09.2015

Parties Involved

Petitioner/Financial Creditor: Canara Bank, Asset Recovery Management Branch, Gomti Nagar, Lucknow, U.P. (cb5248@canarabank.com)

Respondent/Personal Guarantor: Smt. Mithlesh Mishra

Corporate Debtor: M/s K.C. Infrabuild Private Limited

Resolution Professional/Bankruptcy Trustee: Ms Teena Saraswat Pandey, Registration No. IBBI/IPA-001/IP-P00652/2017-18/11126

Tribunal Members: Ms. Reeta Kohli (Member Judicial), Mr. Ashish Verma (Member Technical)

Legal Counsel: Sh. Ankur Gupta, Advocate for Canara Bank

Issues / Allegations / Violations

The case involves a default in repayment of credit facilities availed by Corporate Debtor M/s K.C. Infra Build Private Limited from Canara Bank. The facilities were secured by personal guarantees provided by Smt. Mithlesh Mishra vide Deed of Guarantee dated 31.12.2014, 04.03.2015, and 31.03.2015. The Corporate Debtor committed default in repayment, leading to classification as Non-Performing Asset on 29.09.2015. The outstanding debt amount as on 31.03.2026 is Rs. 67,54,31,888/- along with interest and charges.

Findings & Observations

The Tribunal noted that the resolution process initiated against the Respondent Debtor/Personal Guarantor under Section 95 of IBC, 2016 had failed due to non-submission of any repayment plan by the Personal Guarantor despite sufficient opportunity. The application was filed within the stipulated three-month period from the order dated 06.04.2026 passed under Section 114 read with Section 115(2) of IBC. The Tribunal found that the Applicant had attached all requisite documents in terms of Section 123 of the Code and properly proposed an Insolvency Professional to be appointed as Bankruptcy Trustee.

Penalties / Settlements / Directions

The Tribunal passed a bankruptcy order against Smt. Mithlesh Mishra under Section 126 read with Section 79(3) of IBC. Key directions include:

  • Appointment of Ms Teena Saraswat Pandey as Bankruptcy Trustee under Section 125 of the Code
  • The bankruptcy order shall continue until the Debtor is discharged under Section 138 of IBC
  • The bankrupt must submit statement of financial position to the Bankruptcy Trustee within seven days
  • The estate of the Bankrupt (excluding assets under Section 155(2)) vests with the bankruptcy trustee
  • Bankruptcy Trustee must take custody of all assets, properties, and actionable claims of the Bankrupt
  • Creditors cannot initiate action against bankrupt's property without leave of Adjudicating Authority
  • The bankrupt becomes subject to disqualifications and restrictions under Sections 140 and 141 of the code

Corrective Actions & Future Obligations

The Bankruptcy Trustee is directed to:

  • Adhere to Sections 128, 129(4), 132, 133, 134, 136 and 137 of IBC, 2016
  • Send notices to creditors under Section 130(a) within ten days from the order date
  • Issue public notice in English and vernacular newspapers inviting claims from creditors
  • Conduct administration of distribution of estate under Chapter V (Section 136)
  • Submit preliminary report within ninety days from bankruptcy order date
  • Submit periodical progress reports within fifteen days after the end of every quarter
  • Fee to be determined under Regulation 4 of IBBI Regulations and paid by Committee of Creditors

Final Ruling & Enforcement

The bankruptcy order was passed against Smt. Mithlesh Mishra, resident of House No. 289, Naya Maharaj Nagar, Bahadur Nagar-3, Tehsil Lakhimpur U.P. The Registry was directed to provide copies of the bankruptcy order and petition to the Bankrupt, Creditors and Bankruptcy Trustee within one week. The Bankruptcy Trustee may seek further information or explanation from the debtor, creditor, or any other person, who must furnish such information within seven days of receipt of the request.