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

> NCLT judgment dated 2024-08-30. Citation: TCN-2024-NCLT-00730. 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-00730
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/central-bank-of-india-vs-vimala-joseph-raj-285b4429

## 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, who acted as a personal guarantor for the Corporate Debtor, M/s. Oceanic Tropical Fruits Pvt. Ltd. The application stems from a working capital facility sanctioned by the Applicant along with other consortium banks at the request of the Corporate Debtor and its personal guarantors. The loan account became irregular, leading to its classification as NPA on 20.08.2013. Prior to this application, the consortium banks had filed O.A. No. 344 of 2015 before DRT-2 Chennai, resulting in a final order on 14.03.2019 in favor of the

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## Facts

Central Bank of India, the Financial Creditor, filed an application to initiate insolvency resolution process against Vimala Joseph Raj, the personal guarantor to the Corporate Debtor, M/s. Oceanic Tropical Fruits Pvt. Ltd. The working capital facility was sanctioned at the request of the Corporate Debtor and its guarantors. The loan account became NPA on 20.08.2013. The consortium banks filed O.A. No. 344 of 2015 before DRT-2 Chennai, securing a final order on 14.03.2019 for Rs. 227,20,59,666.28 plus interest, and a recovery certificate was issued on 24.09.2019. A demand notice was issued to the Respondent on 07.12.2020. The Respondent argued the application was barred by limitation, citing discrepancies in the default date and amounts claimed. The Financial Creditor

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** Section 95 of the IBC allows a creditor to apply for initiating the Insolvency Resolution

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**Reasoning:** The court reasoned that the date of default should be reckoned as 24.09.2019, the date of

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**Interpretation:** The interpretation of the limitation period hinges on determining the correct

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**Application:** The court applied the ratio to the facts by considering the recovery

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Central Bank of…
- **Respondents:** M/s Oceanic…; Vimala Jose…
- **Advocates:** Nived…; B. Raghavul…; +1 more

## Timeline

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