Archive · 2 Sep 2026
NCLT Admits Central Bank Insolvency Plea Against Rama Agro
A bank gave a loan to a sugar company, and Rama Agro Foods promised to repay it if the sugar company could not.
The sugar company did not repay the money.
The bank said that ₹27.29 crore was owed.
Rama Agro Foods also did not pay after the bank called on its guarantee.
The National Company Law Tribunal in Mumbai accepted the bank’s insolvency case.
The tribunal said the exact amount still needs to be worked out.
Rama Agro Foods did not appear to defend itself in the proceedings.
An insolvency professional will now take charge and try to resolve the company’s financial problems.
The NCLT Mumbai bench admitted Central Bank of India’s insolvency plea against Rama Agro Foods Pvt Ltd.
The bank claimed a default of ₹27.29 crore linked to a loan given to Shri Gajanan Maharaj Sugar Limited.
Rama Agro Foods had provided a corporate guarantee for the principal borrower’s loan in December 2016.
The tribunal treated February 10, 2026, as the corporate guarantor’s default date after email delivery of the invocation notice.
Shekhar Arvind Parkhi was appointed Interim Resolution Professional to manage the company’s insolvency resolution process.
- Who
- Central Bank of India, Rama Agro Foods Pvt Ltd, Shri Gajanan Maharaj Sugar Limited, and the NCLT Mumbai bench.
- What
- The tribunal admitted the bank’s plea to begin Corporate Insolvency Resolution Process proceedings against Rama Agro Foods as a corporate guarantor.
- When
- The tribunal admitted the plea on September 2, 2026; it treated February 10, 2026, as the guarantor’s default date.
- Where
- The case was decided by the Mumbai bench of the National Company Law Tribunal; Rama Agro Foods is Pune-based.
- Why
- The bank alleged that ₹27.29 crore was unpaid after the principal borrower defaulted and Rama Agro Foods failed to honor its corporate guarantee.
- Claimant
- Central Bank of India
- Company facing insolvency
- Rama Agro Foods Pvt Ltd
- Claimed default
- ₹27,29,61,728.78, or approximately ₹27.29 crore
- Principal borrower
- Shri Gajanan Maharaj Sugar Limited, formerly Utech Sugar Ltd
- Original term loan
- ₹23.68 crore sanctioned in 2016
- Guarantee date
- December 14, 2016
- Interim Resolution Professional
- Shekhar Arvind Parkhi