# Central Bank of India vs. Jainco Automotive Private Limited

> NCLT judgment dated 2026-05-14. Citation: TCN-2026-NCLT-00506. Central Bank of India (Financial Creditor) filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 14 May 2026
- **Citation:** TCN-2026-NCLT-00506
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/central-bank-of-india-vs-jainco-automotive-private-limited-tiu9n

## Summary

### Background

Central Bank of India (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jainco Automotive Private Limited (Corporate Debtor), which acted as a corporate guarantor for a loan extended to Eastern Gases Limited. The principal borrower defaulted, and despite recovery efforts during liquidation, a substantial amount of Rs. 43,47,83,415.00 remained outstanding as of January 3, 2024.

## Facts

Central Bank of India (Financial Creditor) sanctioned working capital credit limits of Rs. 20 crores to Eastern Gases Limited (Principal Borrower) under a Consortium Agreement dated 16/11/2012.

Jainco Automotive Pvt. Ltd. (Corporate Debtor/Guarantor) and Vivek Brothers Pvt. Ltd. provided guarantees for this amount.

Jainco Automotive Pvt. Ltd. executed two Deeds of Guarantee: one on 05/02/2013 for Rs. 43 crores and another on 21/01/2016 for Rs. 47 crores.

The Corporate Debtor created a charge on 9 residential flats via Form 8 on 17/09/2012, mortgaging them for a liability of Rs. 43 crores.

A Joint letter was issued by the Corporate Debtor and Vivek Brothers Pvt. Ltd. to the Financial Creditor for creation of mortgage in respect of 22 flats.

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## Issues and analysis

### Issue 1: Whether the application for CIRP against the corporate guarantor has been filed within the …

**Ratio:** Entries in the books of accounts, including the balance sheet, can amount to an

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**Reasoning:** The Corporate Debtor consistently showed the guarantee amount as a contingent liability

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**Interpretation:** Section 18 of the Limitation Act allows for the extension of the limitation

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**Application:** The Corporate Debtor's own balance sheets from 2019-2023, acknowledging the

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## Parties

- **Judges:** BIDISHA BA…; Cmde Siddharth…
- **Appellants:** Central Bank of…
- **Respondents:** Jainco Automotive…
- **Other parties:** Subodh Kumar…
- **Advocates:** Rabindra Kr…; Anshumala…; +1 more

## Timeline

- **2012-09-17 — Charge Cr…**: The Corporate Debtor created a charge on 9 residential flats via Form 8 by way of…
- **2012-11-16 — Credit Limit…**: Financial Creditor sanctioned working capital credit limits of Rs. 20 crores to Eastern…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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