# Central Bank of India Limited vs. Shri Gajanan Maharaj Sugar Limited

> NCLT judgment dated 2026-07-31. Citation: TCN-2026-NCLT-00786. Central Bank of India Limited (Financial Creditor) filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 31 Jul 2026
- **Citation:** TCN-2026-NCLT-00786
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/central-bank-of-india-limited-vs-shri-gajanan-maharaj-sugar-limited-ih67k

## Summary

### Background

Central Bank of India Limited (Financial Creditor) filed an application under Section 7 of the IBC against Shri Gajanan Maharaj Sugar Limited (Corporate Debtor) for initiating CIRP due to an alleged default in repayment of financial facilities totaling Rs. 23.68 Crores. The loan account became irregular in 2019, leading to SARFAESI action. An OTS proposal was approved in 2023, but the Corporate Debtor failed to comply, resulting in the OTS revocation by the Financial Creditor on 13.01.2025, which was then considered the fresh date of default. The Corporate Debtor raised objections regarding the disclosure of disbursement dates, calculation of interest, authorization for filing, limitation, and the pendency of recovery proceedings before the DRT.

## Facts

Central Bank of India Limited (Applicant/Financial Creditor) filed an application under Section 7 of the IBC, 2016, against Shri Gajanan Maharaj Sugar Limited (Corporate Debtor).

The application, C.P. (IB) No.22/MB/2026, was filed on 06.12.2025 by Mr. Amrendra Jha, Authorised Representative of the Applicant.

The Corporate Debtor was formerly known as Utech Sugar Limited and was incorporated on 23.04.2012.

The Corporate Debtor is engaged in the business of manufacturing sugar from sugarcane and electricity generation.

The Applicant sanctioned financial assistance of Rs. 23.68 Crores to the Corporate Debtor through sanction letters dated 26.07.2016 and 25.10.2016.

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## Issues and analysis

### Issue 1: Whether a financial debt exists between Central Bank of India Limited and Shri Gajanan Maharaj …

**Ratio:** A financial debt exists when financial assistance is sanctioned and availed, secured by

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**Reasoning:** The Applicant sanctioned Rs. 23.68 Crores to the CD, secured by primary and collateral

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**Interpretation:** Section 5(8) of the Code defines "financial debt". The evidence

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**Application:** The Tribunal found that the Applicant established the existence of a

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Central Bank of…
- **Respondents:** Gajanan Maharaj…
- **Other parties:** Ravindra Purushott…; Ashvini R.…; +4 more
- **Advocates:** Riddhi…; Geeta Lun…; +1 more

## Timeline

- **2016-07-26 — Sanction Lette…**: Sanction letter issued for financial…
- **2016-10-25 — Renewed Sanction Letter…**: Renewed Sanction Letter issued for…

## 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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