The National Company Law Tribunal (NCLT) Allahabad Bench admitted Punjab National Bank’s insolvency petition under Section 7 of the Insolvency and Bankruptcy Code(IBC) against a corporate guarantor of Bhagwati Rice Mills Pvt. Ltd., holding that the ₹74.35 crore default was proven through records and a valid guarantee invocation, and that the petition filed on 15 January 2025 was within the three‑year limitation period.
The petition was filed by PNB on 15 January 2025, alleging a default of ₹74.35 crore as of 30 November 2024 arising from cash credit and working capital term loan facilities sanctioned to the principal borrower. The bank invoked the corporate guarantee executed by Jay Ambey Rice Mills Ltd. on…