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

> NCLT judgment dated 2025-07-01. Citation: TCN-2025-NCLT-00847. 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-00847
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kochi/central-bank-of-india-vs-vinu-sagar-26611c3d

## Summary

### Background

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

The petition was filed under Section 95(1) of the IBC, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy Rules, 2019.

The Corporate Debtor, M/s. Jupiter Leys Private Limited, defaulted on a debt of Rs. 72,03,68,700.

Mr. Vinu Sagar is the Personal Guarantor of the Corporate Debtor.

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

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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 upon 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:** The fact that a resolution plan has been filed by one of the guarantors in the

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## Parties

- **Judges:** Madhu S…; Shri. Vina…
- **Appellants:** Central Bank of…
- **Respondents:** M/s. Jupiter Leys…; Vinu S…
- **Other parties:** Vinu Sagar…; Sunil J…; +1 more
- **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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