# In the matter of Central Bank of India vs. Vimala Joseph Raj

> NCLT judgment dated 2024-08-30. Citation: TCN-2024-NCLT-00720. The Central Bank of India, acting as the Financial Creditor, filed an application under Section…

- **Court:** NCLT
- **Order date:** 30 Aug 2024
- **Citation:** TCN-2024-NCLT-00720
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-vimala-joseph-raj-004c0d9e

## Summary

### Background

The Central Bank of India, acting as the Financial Creditor, filed an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against Mrs. Vimala Joseph Raj, the Respondent and Personal Guarantor, due to outstanding debt. The application stems from a working capital facility sanctioned to the Corporate Debtor, M/s. Oceanic Tropical Fruits Pvt. Ltd., for which Mrs. Raj acted as a guarantor. The loan account became irregular, leading to its classification as a Non-Performing Asset (NPA) on 20.08.2013. Prior to this application, the consortium of banks, including the applicant, had filed O.A. No. 344 of 2015 before DRT-2 Chennai for recovery of the outstanding dues against the Corporate Debtor and

…

## Facts

Central Bank of India, the Financial Creditor, filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, to initiate the Insolvency Resolution Process against Mrs. Vimala Joseph Raj, the Respondent, who is a Personal Guarantor to the Corporate Debtor, M/s. Oceanic Tropical Fruits Pvt. Ltd. The working capital facility was sanctioned to the Corporate Debtor at the request of the Corporate Debtor and the Personal Guarantors. Mrs. Vimala Joseph Raj executed a deed of guarantee on 21.03.2012, guaranteeing the repayment of the working capital facilities. The loan account became irregular, and the account was classified as NPA on 20.08.2013. The consortium of banks filed O.A. No. 344 of 2015 before DRT-2 Chennai for recovery of the outstanding dues.

…

## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 95 of the IBC is barred by …

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

…

**Reasoning:** The Tribunal reasoned that the date of default should be reckoned as the date of the debt

…

**Interpretation:** The interpretation of the limitation period is crucial in determining the

…

**Application:** In this case, the application was filed within three years of the date of the

…

## Parties

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

## Timeline

- **2012-03-21 — Deed of Guarantee…**: Mrs. Vimala Joseph Raj executed the deed of guarantee guaranteeing the repayment of…
- **2013-08-20 — Account Classified as…**: The loan account became irregular and was…

## 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-vimala-joseph-raj-004c0d9e