# In the matter of Central Bank of India Vs. Chavva Naga Lakshmi, CP (IB) No. 93/95/AMR/2022

> NCLT judgment dated 2022-10-10. Citation: TCN-2022-NCLT-00814. The Central Bank of India, as the Financial Creditor, filed a petition under Section 95 of the…

- **Court:** NCLT
- **Order date:** 10 Oct 2022
- **Citation:** TCN-2022-NCLT-00814
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-chavva-naga-lakshmi-cp-033c3ba9

## Summary

### Background

The Central Bank of India, as the Financial Creditor, filed a petition under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Smt. Chavva Naga Lakshmi, the Personal Guarantor (Respondent No. 1), and Sri Ananda Lakshmi Narasimha Industries India Private Limited, the Corporate Debtor (Respondent No. 2). The petition seeks to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed credit facilities totaling INR 33,18,09,761.02 from the Financial Creditor. Respondent No. 1 acted as a personal guarantor for these facilities. After availing the credit facilities, the Corporate Debtor defaulted on repayment, leading the Financial Creditor to issue a recall letter on 17.03.2020 for INR 32,34,97,219.64. The Corporate

…

## Facts

The Central Bank of India (Financial Creditor) extended credit facilities totaling INR 33,18,09,761.02 to Sri Ananda Lakshmi Narasimha Industries India Private Limited (Corporate Debtor/Respondent No. 2). Smt. Chavva Naga Lakshmi (Respondent No. 1) acted as a personal guarantor for these credit facilities, executing Form Guarantees on 13.03.2013, 29.03.2014, September-2016, and 01.11.2016. The Corporate Debtor defaulted on repayment, leading the Financial Creditor to issue a recall letter on 17.03.2020 demanding INR 32,34,97,219.64. The Corporate Debtor failed to pay, prompting the Financial Creditor to approach the Debt Recovery Tribunal (DRT) on 05.08.2020. The DRT ordered the Corporate Debtor on 04.04.2022 to pay INR 33,93,23,650.15 as of 03.08.2020. Despite the DRT

…

## Issues and analysis

### Issue 1: Whether the application under Section 95 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** The ratio is that Section 95 of the IBC allows a creditor to initiate insolvency

…

**Reasoning:** The court reasoned that the application is maintainable under Section 95 of the IBC, as

…

**Interpretation:** Section 95 is interpreted to provide a direct mechanism for creditors to pursue

…

**Application:** The ratio and reasoning are applied to the facts by determining that the

…

## Parties

- **Judges:** TELAPROLU…
- **Appellants:** Central Bank of…
- **Respondents:** Ananda Lakshmi…; Chavva Naga…
- **Advocates:** Mr.V.V.S.…

## Timeline

- **2013-03-13 — Execution of G…**: Respondent No.1 executed Form…
- **2014-03-29 — Execution of G…**: Respondent No.1 executed Form…

## 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/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-chavva-naga-lakshmi-cp-033c3ba9