# In the matter of Jammu and Kashmir Bank Limited vs. Kanumuru Raghu Rama Krishna Raju

> NCLT judgment dated 2024-11-18. Citation: TCN-2024-NCLT-00218. The case involves a petition filed by Jammu & Kashmir Bank Limited (Financial Creditor) under…

- **Court:** NCLT
- **Order date:** 18 Nov 2024
- **Citation:** TCN-2024-NCLT-00218
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jammu-and-kashmir-bank-limited-vs-kanumuru-raghu-rama-krishna-raju-57feff4b

## Summary

### Background

The case involves a petition filed by Jammu & Kashmir Bank Limited (Financial Creditor) under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) against Mr. Kanumuru Raghu Rama Krishna Raju (Personal Guarantor) of M/s. Ind-Barath Energy (Utkal) Limited (Corporate Debtor). The Financial Creditor sought initiation of Personal Insolvency Resolution Process against the Personal Guarantor due to default in repayment of loan availed by the Corporate Debtor. The Corporate Debtor had availed credit facilities from a consortium of banks, including Jammu & Kashmir Bank, and the Personal Guarantor had executed a guarantee agreement. Subsequently, the Corporate Debtor underwent Corporate Insolvency Resolution Process (CIRP), and a resolution plan was approved.

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## Facts

A consortium of banks, including Jammu & Kashmir Bank, extended credit facilities of Rs. 429.22 crores to M/s. Ind Barath Energy (Utkal) Ltd. under an agreement dated 03.03.2015. Jammu & Kashmir Bank's share was Rs. 55 crores. Mr. Kanumuru Raghu Rama Krishna Raju stood as a guarantor for the loan. The Corporate Debtor defaulted on 31.12.2014. Bank of Baroda initiated CIRP against the Corporate Debtor under Section 7 of IBC, which was admitted on 29.08.2018. A resolution plan for the Corporate Debtor was approved on 25.07.2022. Jammu & Kashmir Bank invoked the Guarantee Deed by issuing a demand notice dated 09.07.2021. The Personal Guarantor contended that the demand notice was issued after the expiry of the limitation period. The Resolution Professional

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor against the Personal Guarantor is barred by …

**Ratio:** Article 137 of the Limitation Act, 1963 prescribes a limitation period of three years for

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**Reasoning:** The Adjudicating Authority considered the date of default by the Corporate Debtor

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**Interpretation:** The Limitation Act, 1963 applies to proceedings under the IBC. The limitation

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**Application:** In this case, the Corporate Debtor defaulted on 31.12.2014, and the demand

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Jammu & Kashmir…
- **Respondents:** Ind-Barath Energy…; Kanumuru Raghu…
- **Advocates:** Sriram…; Dharmesh…; +2 more

## Timeline

- **2014-12-31 — Corporate Debto…**: M/s. Ind-Barath Energy (Utkal) Limited…
- **2015-03-03 — Working Capital…**: A Working Capital Consortium Agreement was executed between the Corporate Debtor and a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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