# Central Bank of India Limited vs. Rama Agro Foods Private Limited

> NCLT judgment dated 2026-08-31. Citation: TCN-2026-NCLT-00901. Central Bank of India Limited (Financial Creditor) filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 31 Aug 2026
- **Citation:** TCN-2026-NCLT-00901
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/central-bank-of-india-limited-vs-rama-agro-foods-private-limited-dcqs3

## Summary

### Background

Central Bank of India Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Rama Agro Foods Private Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor acted as a corporate guarantor for a loan extended by Central Bank of India Limited to Shri Gajanan Maharaj Sugar Limited (Principal Borrower). The Principal Borrower defaulted on its financial obligations, leading to the invocation of the corporate guarantee by the Financial Creditor.

## Facts

The application, C.P. (IB) No.208/MB/2026, was filed on 26.02.2026 by Central Bank of India (Applicant/Financial Creditor) under Section 7 of the IBC, 2016.

The application seeks to initiate Corporate Insolvency Resolution Process (CIRP) against Rama Agro Foods Private Limited (Corporate Debtor).

Central Bank of India is a public sector bank.

Rama Agro Foods Private Limited was incorporated on 19.12.2004 under the Companies Act, 1956.

The Corporate Debtor is a Corporate Guarantor to the debt payable by the Principal Borrower, Shri Gajanan Maharaj Sugar Limited (formerly Utech Sugar Limited), to the Applicant.

Mr. Shekhar Arvind Parkhi, with registration no. IBBI/IPA-001/IP-P-02494/2021-2022/13801, was proposed as the Interim Resolution Professional (IRP).

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## Issues and analysis

### Issue 1: Whether a financial …

**Ratio:** The Adjudicating Authority must

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**Reasoning:** The Applicant provided renewed Sanction Letters dated 26.07.2016 & 25.10.2016 for a

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**Interpretation:** The documents submitted by the Financial Creditor clearly demonstrate the

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**Application:** The Tribunal found that a financial debt exists, supported by the loan

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Central Bank of…
- **Respondents:** Rama Agro Foods…
- **Other parties:** Ravindra Purushott…; Ashvini R.…; +2 more
- **Advocates:** Riddhi…

## Timeline

- **2004-12-19 — Corporate Debtor…**: Rama Agro Foods Private Limited (Corporate Debtor) was incorporated under the Companies…
- **2016-07-26 — Sanction Lette…**: Renewed Sanction Letter issued to Principal Borrower for financial assistance by way of a…

## 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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