Bank of India Vs Bahubali Realbuild Private Limited (NCLT Kolkata)
The National Company Law Tribunal (NCLT), Kolkata Bench, admitted a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Bank of India seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Bahubali Realbuild Private Limited in its capacity as a corporate guarantor for credit facilities extended to Sunbeam Dealers Private Limited, the principal borrower. The matter proceeded ex parte after the corporate debtor failed to appear despite repeated opportunities.
The Financial Creditor had initially sanctioned a cash credit facility of ₹2.50 crore to the principal borrower on 26 September 2014, which was subsequently enhanced to ₹10 crore on 30 September 2016. The borrower and guarantors executed various loan and security documents, including a Deed of Guarantee executed by the corporate debtor on 30 September 2016. Under the guarantee, the corporate debtor irrevocably and unconditionally guaranteed repayment of the credit facilities and undertook to pay the outstanding amounts within two days of demand by the bank. The facilities were additionally secured by an equitable mortgage of immovable properties.
The principal borrower defaulted in repayment obligations, leading to classification of the loan account as a Non-Performing Asset (NPA) on 30 April 2018. The bank issued demand notices to the borrower and guarantor in June 2018. Subsequently, on 11 July 2025, the bank invoked the corporate guarantee and demanded payment of outstanding dues exceeding ₹17.21 crore. As the notice was returned undelivered, substituted service was effected through newspaper publication on 17 December 2025. The bank claimed that ₹17.54 crore remained due and payable as of 17 October 2025.
