# In the matter of WORLDS WINDOW EXIM PRIVATE LIMITED

> NCLT judgment dated 2025-05-16. Citation: TCN-2025-NCLT-00063. Central Bank of India, the Financial Creditor (FC), filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 16 May 2025
- **Citation:** TCN-2025-NCLT-00063
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/worlds-window-exim-private-limited-45fbfc1f

## Summary

### Background

Central Bank of India, the Financial Creditor (FC), filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against M/s Worlds Window Exim Pvt. Ltd., the Corporate Guarantor (CG), seeking initiation of Corporate Insolvency Resolution Process (CIRP). The CG had provided a guarantee to secure credit facilities availed by M/s Magnifico Minerals Pvt Ltd (Principal Borrower or PB) from a consortium of banks, including the FC. The PB defaulted on repayment, leading to its account being declared NPA. The FC recalled the loan and filed an application before the Debts Recovery Tribunal (DRT) for recovery. The PB submitted a settlement proposal, which did not materialize. The FC then filed an application under Section 7 of the IBC against the PB, which

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## Facts

Central Bank of India (Financial Creditor) filed an application under Section 7 of the IBC against M/s Worlds Window Exim Pvt. Ltd. (Corporate Guarantor). The Corporate Guarantor had provided a guarantee for credit facilities availed by M/s Magnifico Minerals Pvt Ltd (Principal Borrower) amounting to Rs 100 crores from a consortium of banks. The Principal Borrower defaulted on repayment, and its account was declared NPA. The Financial Creditor recalled the loan and filed an application before the DRT. The Principal Borrower submitted a settlement proposal that failed. The Financial Creditor initiated CIRP against the Principal Borrower, which was admitted. The Financial Creditor then filed the present application against the Corporate Guarantor. The Corporate Guarantor

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor is maintainable against the Corporate …

**Ratio:** Each individual financial creditor of the consortium could initiate proceedings against

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**Reasoning:** The court relied on the judgment of the Hon'ble Supreme Court in Laxmi Pat Surana, where

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**Interpretation:** This means that any financial creditor can initiate proceedings against the

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**Application:** Since the corporate guarantee was executed in favor of the FC, the FC has the

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## Parties

- **Judges:** SH. ASHOK KUMAR…; Reena Sinh…
- **Appellants:** Central Bank of…
- **Respondents:** M/s Worlds Window…

## Timeline

- **2015-07-09 — Guarantee Ex…**: The Respondent executed the guarantee to secure the credit facilities availed by the CD,…
- **2017-04-12 — Balance Confi…**: The PB submitted its ‘Balance Confirmation' of outstanding dues of Rs 107,94,29,655.06 in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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