# In the matter of CL Sharma & Ors. vs. Bank of Maharashtra & Ors.

> NCLAT judgment dated 2024-02-27. Citation: TCN-2024-NCLAT-00616. The case involves two appeals filed by the Personal Guarantors of a Corporate Debtor…

- **Court:** NCLAT
- **Order date:** 27 Feb 2024
- **Citation:** TCN-2024-NCLAT-00616
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/cl-sharma-ors-vs-bank-of-maharashtra-ors-26ca794d

## Summary

### Background

The case involves two appeals filed by the Personal Guarantors of a Corporate Debtor challenging an order dated 25.01.2024 passed by the National Company Law Tribunal (NCLT), New Delhi Bench, Court – IV. The NCLT order was related to an application filed by the Bank of Maharashtra under Section 95, sub-section (1) of the Insolvency and Bankruptcy Code (IBC). The bank had granted a loan to Modern Instruments Private Limited in 2013, which was classified as a Non-Performing Asset (NPA) on 27.07.2016. The bank issued a recall notice and invoked the guarantee against the Appellants, who were personal guarantors. Subsequently, the bank filed applications under Section 95, sub-section (1) of the IBC, which were registered as CP (IB) No. 282/ND/2023 and CP (IB) No.

…

## Facts

Bank of Maharashtra granted a loan to Modern Instruments Private Limited in 2013. The loan account was classified as NPA on 27.07.2016. Shri CL Sharma and Shri Deepak Sharma were personal guarantors to the loan. On 26.07.2022, the Bank of Maharashtra issued a recall notice and invoked the guarantee addressing to both the Appellant(s) as Guarantors. The Bank of Maharashtra filed Applications under Section 95, sub-section (1), which were registered as CP (IB) No. 282/ND/2023 and CP (IB) No.285/ND/2023 against the Appellant(s) respectively in March 2023. The Adjudicating Authority appointed a RP and directed the RP to submit a Report. The Appellants, being the personal guarantors, challenged the order, contending that the applications were barred by limitation since the

…

## Issues and analysis

### Issue 1: Whether the Applications filed under Section 95 sub-section (1) of the IBC were ex-facie barred by …

**Ratio:** The Hon'ble Supreme Court in Diliip B Jiwrjka vs. Union of India & Ors. has held that

…

**Reasoning:** The NCLAT reasoned that the Adjudicating Authority should consider the issue pertaining

…

**Interpretation:** This means that the issue of limitation is to be considered at the stage of

…

**Application:** The NCLAT held that the submission of the Appellant(s) that Applications were

…

## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** CL Sh…
- **Respondents:** Modern Instruments…; Bank of Maharashtr…
- **Advocates:** Abhjijeet…; Akash Chat…; +7 more

## Timeline

- **2013-01-01 — Loan Gra…**: Bank of Maharashtra granted loan to…
- **2016-07-27 — Account Classified as…**: The loan account was classified as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/cl-sharma-ors-vs-bank-of-maharashtra-ors-26ca794d