# In the matter of JAY AMBEY RICE MILLS PRIVATE LIMITED

> NCLT judgment dated 2026-01-20. Citation: TCN-2026-NCLT-00057. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 Jan 2026
- **Citation:** TCN-2026-NCLT-00057
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-allahabad/jay-ambey-rice-mills-private-limited-59e7cd0f

## Summary

### Background

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Jay Ambey Rice Mills Ltd., the Corporate Guarantor for the credit facilities availed by the Principal Borrower, M/s Bhagwati Rice Mills Private Limited.

## Facts

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Jay Ambey Rice Mills Ltd.

M/s Jay Ambey Rice Mills Ltd. is the Corporate Guarantor for the credit facilities availed by M/s Bhagwati Rice Mills Private Limited.

The Principal Borrower, M/s Bhagwati Rice Mills Private Limited, availed various credit facilities from Punjab National Bank, aggregating to Rs. 66,00,00,000/-.

The Corporate Guarantee was executed by M/s Jay Ambey Rice Mills Ltd. on 23.11.2022, guaranteeing repayment of the credit facilities to the extent of Rs. 52,77,00,000/-.

The account of the Principal Borrower was classified as NPA on 08.06.2023.

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## Issues and analysis

### Issue 1: Whether the present application is filed …

**Ratio:** The application was filed within the

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**Reasoning:** The Tribunal considered Article 137 of the Limitation Act, 1963, which provides a period

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**Interpretation:** The date of default for a corporate guarantor is reckoned from the date of

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**Application:** The Tribunal applied the principles of limitation to the facts of the case and

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Punjab National…
- **Respondents:** M/s Jay Ambey…
- **Other parties:** Babita…; SARFAES…; +2 more
- **Advocates:** Prakhar S…; Amit D…; +1 more

## Timeline

- **16.09.2019 — Guarantee…**: The Principal Borrower for which the Corporate…
- **23.07.2001 — Incorporati…**: The Corporate Debtor was incorporated on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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