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

> NCLT judgment dated 2024-08-30. Citation: TCN-2024-NCLT-00713. The Central Bank of India filed an application under Section 95(1) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 30 Aug 2024
- **Citation:** TCN-2024-NCLT-00713
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-sophia-james-walter-51297f52

## Summary

### Background

The Central Bank of India filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, against Mrs. Sophia James Walter, the Respondent and Personal Guarantor, for initiating the Insolvency Resolution Process. The application pertains to a debt of Rs. 63,82,50,738/- payable by the guarantor, with the date of debt due and default both occurring on 24.09.2019. The debt arose from a working capital facility sanctioned to M/s. Oceanic Tropical Fruits Pvt. Ltd., the Corporate Debtor, for which Mrs. Walter provided a guarantee on 21.03.2012. The loan account became irregular, classified as NPA on 20.08.2013. The consortium banks, including the applicant, had previously filed O.A. No. 344 of 2015 before DRT-2 Chennai, securing a final order on

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## Facts

Central Bank of India sanctioned a working capital facility to M/s. Oceanic Tropical Fruits Pvt. Ltd., for which Mrs. Sophia James Walter acted as a personal guarantor, executing a deed of guarantee on 21.03.2012. The loan account became irregular, and was classified as NPA on 20.08.2013. The consortium of banks, including Central Bank of India, filed O.A. No. 344 of 2015 before DRT-2 Chennai, resulting in a final order on 14.03.2019, for Rs. 227,20,59,666.28 against the Corporate Debtor and Guarantors. A recovery certificate, DRC No. 382/2019, was issued on 24.09.2019. Central Bank of India issued a Form-B demand notice to Mrs. Walter on 08.12.2020, seeking Rs. 63,82,50,738/-, which remained unpaid. ICICI Bank Ltd, another consortium member, had previously initiated

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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 on 24.09.2019 provided

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**Interpretation:** The court interpreted the provisions of the IBC and the RDB Act to mean that a

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**Application:** The court applied the ratio to the facts of the case, noting that the recovery

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Central Bank of…
- **Respondents:** OCEANIC TROPICAL…; Sophia James…
- **Advocates:** Nived…; B. Raghavul…; +1 more

## Timeline

- **2012-03-21 — Deed of Guarantee…**: Mrs. Sophia James Walter executed the deed of…
- **2013-08-20 — Account Decla…**: The loan account of M/s. Oceanic Tropical Fruits Pvt. Ltd. was classified as…

## 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)

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