# Central Bank of India vs. M/s. Bags Registry Services Pvt. Ltd.

> NCLT judgment dated 2026-09-30. Citation: TCN-2026-NCLT-01084. Central Bank of India, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 30 Sept 2026
- **Citation:** TCN-2026-NCLT-01084
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/bags-registry-services-private-limited-2isb7

## Summary

### Background

Central Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), against M/s. Bags Registry Services Pvt. Ltd., the Corporate Debtor. The application sought to initiate the Corporate Insolvency Resolution Process (CIRP) due to a default on outstanding dues of Rs. 312,89,56,823/- as of 04.01.2025. The Corporate Debtor had acted as a Corporate Guarantor for working capital facilities granted by the Financial Creditor to M/s C&C Constructions Limited.

## Facts

Central Bank of India (Applicant/Financial Creditor) filed an application under Section 7 of the IBC against M/s. Bags Registry Services Pvt. Ltd. (Respondent/Corporate Debtor).

The Corporate Debtor defaulted on outstanding dues of Rs. 312,89,56,823/- as on 04.01.2025.

The Financial Creditor granted working capital facilities of Rs. 250 Crore to M/s C&C Constructions Limited in 2011 under a consortium arrangement.

M/s. Bags Registry Services Pvt. Ltd. became the Corporate Guarantor for these credit facilities.

Loan and security documents were executed, including First Pari Passu Charge and 2nd Pari Passu Charge over assets, and pledge of 10% shares held by promoters.

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## Issues and analysis

### Issue 1: Whether the demand notice issued under Section 13(2) of the SARFAESI Act, 2002, constitutes a valid …

**Ratio:** A demand notice issued under Section 13(2) of the Securitisation and Reconstruction of

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**Reasoning:** The NCLT relied on the NCLAT judgment in Ujwal Gupta v. Union Bank of India and Anr.

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**Interpretation:** The legal precedent establishes that a formal invocation of guarantee does not

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**Application:** The NCLT applied this precedent to conclude that the 18.11.2020 SARFAESI notice

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## Parties

- **Judges:** BACHU VENKAT…; RAVINDRA CHATURVED…
- **Appellants:** Central Bank of…
- **Respondents:** M/s. Bags…
- **Other parties:** NAVNEET KUMAR…
- **Advocates:** Yogesh Pa…; Manvi…; +1 more

## Timeline

- **2011 — Grant of Working…**: Central Bank of India granted working capital facilities for financial assistance to M/s…
- **2011-12-15 — Sanction Lette…**: Sanction letter dated 15.12.2011 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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