# In the matter of Central Bank of India vs. James Walter

> NCLT judgment dated 2024-08-30. Citation: TCN-2024-NCLT-00714. The case pertains to an application filed by Central Bank of India under Section 95(1) of the…

- **Court:** NCLT
- **Order date:** 30 Aug 2024
- **Citation:** TCN-2024-NCLT-00714
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-james-walter-10d934ab

## Summary

### Background

The case pertains to an application filed by Central Bank of India under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) against Mr. James Walter, a personal guarantor to the corporate debtor, M/s. Oceanic Edibles International Ltd. The application seeks initiation of insolvency resolution process against the personal guarantor. The corporate debtor had availed a working capital facility from a consortium of banks, including the applicant. The loan account became irregular and was classified as NPA on 10.09.2013. The consortium banks filed O.A. No. 335 of 2015 before DRT-2 Chennai for recovery of outstanding dues against the corporate debtor and the guarantors. The DRT passed a final order on 21.02.2019 in favor of the consortium banks. A recovery

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## Facts

Central Bank of India, representing a consortium of banks, extended a working capital facility to M/s. Oceanic Edibles International Ltd., the corporate debtor. Mr. James Walter acted as a personal guarantor for the loan. The loan account became irregular, leading to its classification as a Non-Performing Asset (NPA) on 10.09.2013. The consortium banks initiated recovery proceedings before the Debt Recovery Tribunal (DRT-2 Chennai) through O.A. No. 335 of 2015 against both the corporate debtor and the guarantors. The DRT issued a final order on 21.02.2019, favoring the banks for Rs. 103,04,18,350.73 plus interest. A recovery certificate was issued on 27.06.2019. A demand notice was issued to Mr. Walter on 08.12.2020, seeking payment of Rs. 153.83 Crores. ICICI Bank,

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## Issues and analysis

### Issue 1: Whether the application under Section 95 …

**Ratio:** The limitation period for initiating insolvency proceedings is three years from the date

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**Reasoning:** The court reasoned that the recovery certificate issued by the DRT created a fresh cause

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**Interpretation:** The court interpreted the Dena Bank judgment to mean that a recovery

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**Application:** The court applied the ratio to the facts of the case, holding that the date of

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Central Bank of…
- **Respondents:** Oceanic Edibles…; James W…
- **Advocates:** Nived…; B. Raghavul…; +1 more

## Timeline

- **2013-09-10 — Account classified as…**: The loan account of the Corporate Debtor was…
- **2015-01-01 — O.A. filed be…**: The consortium banks filed O.A. No. 335 of 2015 before DRT-2 Chennai for recovery of…

## 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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