# In the matter of Bank of Maharashtra vs. Nita Kamal Jajoo

> NCLT judgment dated 2024-12-12. Citation: TCN-2024-NCLT-00066. The Bank of Maharashtra filed a Company Petition under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Dec 2024
- **Citation:** TCN-2024-NCLT-00066
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bank-of-maharashtra-vs-nita-kamal-jajoo-556f999c

## Summary

### Background

The Bank of Maharashtra filed a Company Petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, to initiate an Insolvency Resolution Process against Ms. Nita Kamal Jajoo, the personal guarantor, due to defaults in loan repayments by M/s. Jajoo Enterprises Limited. The bank had sanctioned credit facilities to the company, which were secured by deeds of guarantee executed by Ms. Jajoo and Shri Kamal Satyaprakash Jajoo. The corporate debtor defaulted, leading to their account being declared a Non-Performing Asset (NPA). The bank issued a 'Recall Notice' and also offered a One Time Settlement scheme, but the dues remained unpaid.

## Facts

The Bank of Maharashtra sanctioned a credit facility of Rs. 10 Crores and a term loan of Rs. 1 Crore to M/s. Jajoo Enterprises Ltd. Deeds of Guarantee were executed by Ms. Nita Kamal Jajoo and Shri. Kamal Satyaprakash Jajoo in favor of the bank. The corporate debtor defaulted on the loan repayments, leading to the account being declared a Non-Performing Asset (NPA) on 27.09.2013. The bank issued a 'Recall Notice' on 21.08.2017 to the guarantors and borrower. The bank also offered a One Time Settlement (OTS) scheme under 'MAHAMUKTI-2017-2018'. The outstanding debt as of 02.06.2014 was Rs. 8,72,09,602. The Personal Guarantor, Ms. Nita Kamal Jajoo, contended that the application was barred by limitation and that no demand notice was served. The bank provided proof of

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## Issues and analysis

### Issue 1: Whether the application filed by the Bank …

**Ratio:** Article 137 of the Limitation Act, 1963 provides that an application has to be filed

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**Reasoning:** The Personal Guarantor contended that the application was barred by limitation. However,

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**Interpretation:** The interpretation involves determining the date of default and whether the

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**Application:** The Resolution Professional is directed to examine the issue of limitation in

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Bank of Maharashtr…
- **Respondents:** M/s Jajoo…; Nita Kamal…

## Timeline

- **2012-06-30 — Sanction Lette…**: Bank of Maharashtra sanctioned a credit facility and term loan to M/s Jajoo Enterprises…
- **2013-01-10 — Sanction Lette…**: Bank of Maharashtra sanctioned a credit facility and term loan to M/s Jajoo Enterprises…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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