# In the matter of Central Bank of India vs. Vinu Sagar

> NCLT judgment dated 2025-07-01. Citation: TCN-2025-NCLT-00849. The Central Bank of India filed a petition under Section 95(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 1 Jul 2025
- **Citation:** TCN-2025-NCLT-00849
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kochi/central-bank-of-india-vs-vinu-sagar-2356bd4d

## Summary

### Background

The Central Bank of India filed a petition under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, to initiate insolvency resolution process against Mr. Vinu Sagar, the Personal Guarantor of the Corporate Debtor, M/s. Jupiter Leys Private Limited, for a default of Rs. 72,03,68,700.

## Facts

Central Bank of India filed a petition under Section 95(1) of IBC against Mr. Vinu Sagar, Personal Guarantor of Jupiter Leys Private Limited.

Jupiter Leys Private Limited was sanctioned credit facilities on 26.04.2012, and a Loan Agreement was executed on 18.06.2012.

Mr. Vinu Sagar and Mr. Vijayan Thoppil Vidyasagar executed personal guarantees in favor of the Bank.

The Corporate Debtor defaulted, and the Petitioner initiated recovery proceedings under the Recovery of Debts and Bankruptcy Act, 1993 and the SARFAESI Act, 2002.

The Corporate Insolvency Process against the Corporate Debtor was admitted on 22.12.2023 in CP (IBC)/21/KOB/2023 filed by IDBI Bank Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016.

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## Issues and analysis

### Issue 1: Whether the initiation of insolvency proceedings against the Personal Guarantor is maintainable …

**Ratio:** The creditor has the right to invoke the personal guarantee and proceed against the

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**Reasoning:** The Tribunal relied on the judgment of the Hon'ble NCLAT, Chennai in the matter of Mr.

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**Interpretation:** Approval of a resolution plan does not ipso facto discharge a personal

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**Application:** Even if the personal guarantor, i.e., the suspended director of the Corporate

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## Parties

- **Judges:** Madhu S…; Shri. Vina…
- **Appellants:** Central Bank of…
- **Respondents:** Jupiter Leys…; Vinu S…
- **Other parties:** V. Dura…
- **Advocates:** P. Pras…; Harikumar.…

## Timeline

- **2012-04-26 — Sanction of Credit…**: The Corporate Debtor, M/s. Jupiter Leys Private Limited was sanctioned various credit…
- **2012-06-18 — Loan Agreement…**: A Loan Agreement was executed between the…

## 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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