# In the matter of Central Bank of India vs. K.Shashidhar & Ors.

> NCLT judgment dated 2025-01-29. Citation: TCN-2025-NCLT-00564. The case involves an application (IA No. 492 of 2021) filed by Central Bank of India, a…

- **Court:** NCLT
- **Order date:** 29 Jan 2025
- **Citation:** TCN-2025-NCLT-00564
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-kshashidhar-ors-687dd287

## Summary

### Background

The case involves an application (IA No. 492 of 2021) filed by Central Bank of India, a financial creditor, under Section 5 of the Limitation Act read with Rule 11 of the National Company Law Tribunal Rules, 2016, seeking condonation of a 201-day delay in filing a petition under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, against Mr. K. Shashidhar, the personal guarantor (Respondent No. 1), and M/s. Kamineni Steel and Power India Limited, the corporate debtor (Respondent No. 2). The financial creditor had extended credit facilities to the corporate debtor since 2011, and the personal guarantor had executed a deed of guarantee on 24.12.2014 guaranteeing the repayment of these facilities. The corporate debtor's account was classified as NPA on

…

## Facts

Central Bank of India, a banking institution, extended credit facilities to M/s. Kamineni Steel and Power India Limited (Corporate Debtor) since 2011. Mr. K. Shashidhar (Respondent No. 1) provided a personal guarantee by executing a Deed of Guarantee dated 24.12.2014, guaranteeing the repayment of the credit facilities. The loan accounts became irregular and were classified as NPA on 31.12.2015. The bank invoked the guarantee agreement on 21.01.2017. The Corporate Debtor was referred to the Tribunal under Section 10 of the Insolvency and Bankruptcy Code, 2016, and liquidation proceedings were initiated on 26.10.2018. The Financial Creditor issued a demand notice on 15.12.2020, demanding Rs. 287,63,91,873. The Financial Creditor filed an application under Section 95 of

…

## Issues and analysis

### Issue 1: Whether this Application under Section 5 of Limitation Act can be allowed for considering Petition …

**Ratio:** The ratio decidendi is that an acknowledgement of debt by the principal borrower

…

**Reasoning:** The Tribunal reasoned that the acknowledgement of debt in the balance sheet, after

…

**Interpretation:** This interprets Section 18 of the Limitation Act in conjunction with the

…

**Application:** The Tribunal applied this principle to the facts of the case, noting that the

…

## Parties

- **Judges:** Venkata Ramakrishn…; Shri. Chara…
- **Appellants:** Central Bank of…
- **Respondents:** M/s. Kamineni…; K.Shash…

## Timeline

- **1970-01-01 — Banking Compa…**: Banking Companies (Acquisitions and…
- **2011-01-01 — Credit Facilities…**: Credit facilities granted to the Corporate Debtor by the Applicant/Financial Creditor…

## 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-kshashidhar-ors-687dd287