# In the matter of Central Bank of India vs. Ritesh Agarwal

> NCLT judgment dated 2024-12-11. Citation: TCN-2024-NCLT-00073. The case involves an application filed by Central Bank of India against Ritesh Agarwal, a…

- **Court:** NCLT
- **Order date:** 11 Dec 2024
- **Citation:** TCN-2024-NCLT-00073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-ritesh-agarwal-dd48b906

## Summary

### Background

The case involves an application filed by Central Bank of India against Ritesh Agarwal, a personal guarantor to the corporate debtor, Rajvir Industries Limited, under Section 123 of the Insolvency and Bankruptcy Code (IBC), 2016, read with the Insolvency and Bankruptcy (Application to Adjudicating Authority for Bankruptcy Process for Personal Guarantors to Corporate Debtors) Rules, 2019. The applicant seeks to initiate bankruptcy proceedings against the personal guarantor. The corporate debtor's account slipped into NPA category due to default in repayment. An earlier application under Section 7 of IBC by State Bank of India was admitted. The applicant also filed an OA before DRT-II, Hyderabad, for recovery of dues. The resolution professional (RP) was discharged in a

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## Facts

Central Bank of India filed an application under Section 123 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate bankruptcy proceedings against Ritesh Agarwal, the personal guarantor of Rajvir Industries Limited. Rajvir Industries Limited's account was classified as NPA due to default in debt repayment. State Bank of India, another creditor, had previously filed an application under Section 7 of IBC, which was admitted. Central Bank of India also filed an OA before DRT-II, Hyderabad, for recovery of dues. An earlier resolution professional (RP) was discharged, and the creditor was granted liberty to take further steps. An earlier CP(IB) was withdrawn with liberty to file a fresh application. The personal guarantor raised objections, including the

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## Issues and analysis

### Issue 1: Whether the Applicant/Creditor is entitled to proceed against the Respondent/Guarantor for …

**Ratio:** The court relied on the Supreme Court's ruling in Topline Shoes Ltd Vs Corporation Bank,

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**Reasoning:** The court reasoned that the objections raised by the personal guarantor were devoid of

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**Interpretation:** The court interpreted Section 121(2) of the IBC, which specifies a three-month

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**Application:** The court applied the principles from the Topline Shoes case and the

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Central Bank of…
- **Respondents:** Rajvir Industries…; Ritesh Ag…

## Timeline

- **2019-09-03 — OA Filed Befor…**: Applicant along with State Bank of India filed OA before Hon'ble DRT-II, Hyderabad for…
- **2021-04-26 — Tribunal Admits…**: Tribunal admitted an application…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 123 — Application by creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-123)

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