Central Bank of India Guarantor Bankruptcy: Zero Recovery

Central Bank of India Vs Vimala Joseph Raj: NCLT Notes Zero Recovery in Guarantor Bankruptcy

Authority: National Company Law Tribunal, Division Bench (Court–I) Chennai

Order Date: 16 July 2026

Case Overview

The National Company Law Tribunal (NCLT) Chennai heard an application in the ongoing bankruptcy process of personal guarantor Vimala Joseph Raj. The application was filed by the Bankruptcy Trustee to submit the third progress report for the quarter ended 30 June 2026. The main petition, C.P. (IB)/230(CHE)2025, was initiated by Central Bank of India against the personal guarantor. The specific application heard was numbered IA(I.B.C)/1191(CHE)2026.

Final Outcome

The Bankruptcy Trustee, Shri. Chandrasekhar Sagutoor, appeared before the tribunal and reported that as of the hearing date, no amount had been realized from the bankruptcy process of the personal guarantor. The tribunal accepted the third progress report for the quarter ended 30 June 2026 into the record, subject to all just exceptions. The application (IA) was subsequently disposed of by the bench consisting of Member (Judicial) Shri. Sanjiv Jain and Member (Technical) Shri. Venkataraman Subramaniam.

Topics: Insolvency Proceedings, Banking Recovery, NCLT Order