# Bank of India vs. M/s Cedar Hospitality Private Limited

> NCLT judgment dated 2026-05-11. Citation: TCN-2026-NCLT-00515. Bank of India (Financial Creditor) filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 11 May 2026
- **Citation:** TCN-2026-NCLT-00515
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/bank-of-india-vs-ms-cedar-hospitality-private-limited-a79ee9b8

## Summary

### Background

Bank of India (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Cedar Hospitality Private Limited (Corporate Debtor/Guarantor) seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had defaulted on a payment of Rs. 140,49,43,614/- as of 30.01.2025. M/s Cedar Hospitality Private Limited acted as a corporate guarantor for M/s Golf Technologies Private Limited (Principal Borrower), which defaulted on 31.03.2013, leading to its loan account being classified as NPA on 18.01.2014.

## Facts

Bank of India (Financial Creditor) filed a Section 7 IBC petition against M/s Cedar Hospitality Private Limited (Corporate Debtor) on 29.04.2025.

The Corporate Debtor defaulted on a payment of Rs. 140,49,43,614/- as on 30.01.2025.

M/s Cedar Hospitality Private Limited is the Corporate Guarantor for M/s Golf Technologies Private Limited (Principal Borrower).

M/s Golf Technologies Private Limited availed financial assistance around 2013 and defaulted on 31.03.2013.

The Principal Borrower's loan account was classified as NPA on 18.01.2014, effective from 30.06.2013.

M/s Cedar Hospitality Private Limited executed a Corporate Guarantee Deed on 08.01.2013.

Bank of India issued a notice under Section 13(2) of the SARFAESI Act, 2002, on 05.02.2014, invoking the guarantee.

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## Issues and analysis

### Issue 1

**Ratio:** A Recovery Certificate issued by the DRT gives rise to a fresh cause of action, extending

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**Reasoning:** The NCLT relied on the Supreme Court's ruling in Dena Bank v. C. Shivakumar Reddy, (2021)

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**Interpretation:** The issuance of a Recovery Certificate and subsequent acknowledgments of debt,

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**Application:** The Recovery Certificate issued on 29.08.2017 extended the limitation period.

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## Parties

- **Judges:** JYOTSNA S…; Anu Jagmoha…
- **Appellants:** Bank of…
- **Respondents:** M/s Cedar…
- **Other parties:** Shailesh Chandra…
- **Advocates:** Karan G…; Vidhika K…; +4 more

## Timeline

- **2013-01-08 — Corporate Guarantee…**: M/s Cedar Hospitality Private Limited (Corporate Guarantor) executed a Corporate…
- **2013 — Financial Assistance…**: M/s Golf Technologies Private Limited…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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