Hon'ble Judges/Coram:
A.M. Khanwilkar, B.R. Gavai and Krishna Murari

JUDGMENT

A.M. Khanwilkar, J.

1. Two central issues arise for our determination in this appeal, as follows:

(i) Whether an action Under Section 7 of the Insolvency and Bankruptcy Code, 2016¹ can be initiated by the financial creditor (Bank) against a corporate person (being a corporate debtor) concerning guarantee offered by it in respect of a loan account of the principal borrower, who had committed default and is not a "corporate person" within the meaning of the Code?

(ii) Whether an application Under Section 7 of the Code filed after three years from the date of declaration of the loan account as Non-performing Asset², being the date of default, is not barred by limitation?

2. Briefly stated, Respondent No. 1 bank³ extended credit facility to M/s. Mahaveer Construction⁴, a proprietary firm of the Appellant, through two loan agreements in years 2007 and 2008 for a term loan of Rs. 9,60,00,000/- (Rupees nine crore sixty lakhs only) and an additional amount of Rs. 2,45,00,000/- (Rupees two crore forty-five lakhs only), respectively. The loan amount was disbursed to the Principal Borrower. M/s. Surana Metals Limited⁵, of which the Appellant is also a Promoter/Director, had offered guarantee to the two loan accounts of the Principal Borrower. The stated loan accounts were declared NPA on 30.1.2010. The Financial Creditor then issued a recall notice on 19.2.2010 to the Principal Borrower, as well as, the Corporate Debtor, demanding repayment of outstanding amount of Rs. 12,35,11,548/- (Rupees twelve crore thirty-five lakhs eleven thousand five hundred forty-eight only).

3. The Financial Creditor then filed an application Under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993⁶ against the Principal Borrower before the Debt Recovery Tribunal........