# Central Bank of India Limited vs. M/s. Ashwinikrishnaa Textiles Pvt Ltd.

> NCLT judgment dated 2026-05-14. Citation: TCN-2026-NCLT-00505. Central Bank of India Limited, as a Financial Creditor, filed an application under Section 7 of…

- **Court:** NCLT
- **Order date:** 14 May 2026
- **Citation:** TCN-2026-NCLT-00505
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/central-bank-of-india-limited-vs-ms-ashwinikrishnaa-textiles-pvt-ltd-ywmab

## Summary

### Background

Central Bank of India Limited, as a Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s. Ashwinikrishnaa Textiles Pvt Ltd. (Corporate Debtor), which acted as a Corporate Guarantor for Shri Vallabh Pittie South West Industries Ltd. (Principal Borrower). The Principal Borrower is already undergoing its own Corporate Insolvency Resolution Process (CIRP), and a resolution plan for it is currently pending approval by its Committee of Creditors (CoC). The Financial Creditor claimed a total debt of INR 53,94,00,000/- with an amount in default of Rs. 70,35,32,464.32. The Corporate Debtor raised several objections, including improper service of notice, the application being a recovery mechanism, wrongful NPA

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## Facts

Central Bank of India Limited filed an application under Section 7 of the IBC, 2016, against M/s. Ashwinikrishnaa Textiles Pvt Ltd.

M/s. Ashwinikrishnaa Textiles Pvt Ltd. is a Corporate Guarantor for Shri Vallabh Pittie South West Industries Ltd. (Principal Borrower).

The application was affirmed by Mr. Rajeev Kumar Jha, Chief Manager of Central Bank of India, authorized by a power of attorney dated 08.10.2014.

The Corporate Debtor's CIN is U17111TZ2008PTC014199, incorporated on 06.02.2008, with its registered office in Coimbatore, Tamil Nadu.

Ms. Dipti Narayan Mundra (IBBI/IPA-001/IP-P-02845/2023-2024/14366) was named as the proposed Interim Resolution Professional (IRP).

The total debt granted by the Applicant under three loan facilities is INR 53,94,00,000/-.

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## Issues and analysis

### Issue 1: Whether service of a guarantee invocation notice is deemed effective if sent to the last known …

**Ratio:** As per Section 27 of the General Clauses Act, 1897, and Section 114 Illustration (f) of

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**Reasoning:** The Tribunal relied on Supreme Court judgments (C.C. Alavi Haji v. Palapetty Muhammed,

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**Interpretation:** The legal provisions and precedents interpret 'service' broadly to include

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**Application:** The Applicant sent the 'Loan Recall cum Guarantee Invocation Notice' dated 15th

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Central Bank of…
- **Respondents:** M/s. Ashwinikrishn…
- **Other parties:** Committee of…; Directors of…; +3 more
- **Advocates:** Narpat…; Prakhar T…; +3 more

## Timeline

- **2014-10-08 — Power of At…**: Mr. Rajeev Kumar Jha, Chief Manager of Central Bank of India, was duly authorized by a…
- **2015-03-12 — Sanction…**: Copy of Sanction Letter…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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