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NATIONAL COMPANY LAW TRIBUNAL
Shri. Labh Singh, Member (Judicial), Ms. Rekha Kantilal Shah, Member (Technical)
CENTRAL BANK OF INDIA – Appellant
Versus
Mr. JAI KUMAR GOYAL – Respondent
C.P (IB) No. 184/KB/2021
For the RP: S.K. Ray, Zeba Khan, Muskan Saha, Ashmita Lohia, Utkarshika
For the PG: Suryaneel Das
Bankruptcy proceedings can be initiated if a repayment plan is rejected as per insolvency regulations.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 112, 114, and 115 - Personal insolvency resolution process - Application filed for declaring completion of the process and rejection of repayment plan - Tribunal ordered closure of the process due to non-approval of repayment plan by financial creditors. (Paras 11, 12)
(B) Creditors' Rights - If the repayment plan is rejected, creditors can apply for bankruptcy proceedings under Chapter IV as per provisions. (Paras 8, 9)
Facts of the case:
A petition for initiating personal insolvency resolution against the personal guarantor of a corporate debtor was filed, and multiple meetings of creditors were held to discuss a joint repayment plan which ultimately failed to obtain the required votes for approval.
Findings of Court:
The Tribunal found that the response from creditors on the proposed joint repayment plan led to its rejection, thus supporting the closure of the insolvency resolution process.
Issues: Whether the repayment plan should be approved or rejected based on creditor votes.
Ratio Decidendi: The court ruled that the non-approval of the repayment plan leads to closure of the insolvency resolution process and the creditors’ right to initiate bankruptcy proceedings is upheld.
Result: Application for closure of the insolvency resolution process was allowed and the repayment plan was rejected.
| Table of Content |
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| 1. details regarding the insolvency resolution process and joint repayment plans proposed by personal guarantors. (Para 4 , 5 , 6) |
| 2. court's orders regarding closure of the insolvency process and the creditors' right to initiate bankruptcy. (Para 7 , 8 , 9 , 11 , 12) |
ORDER
Per: Rekha Kantilal Shah, Member (Technical)
1. The Court convened through physical mode.
2. The present application is filed under Section 112 of Insolvency and Bankruptcy Code, 2016 (“IBC”) to take on record the report prepared by the Resolution Professional under Section 112 of IBC, 2016.
3. This application IA(IBC) No.1243/KB/2025 has been filed by the applicant seeking following reliefs, inter alia:
I. This Tribunal may be pleased to pass appropriate orders declaring the completion of the Insolvency Resolution Process of the Personal Guarantor, Mr. Jai Goyal, pursuant to the rejection of the Repayment Plan under Section 112 of IBC, 2016.
II. The Tribunal may be pleased to grant liberty to the financial creditors to file an application for initiation of Bankruptcy Process under Section 121 of IBC, 2016.
III. Such further Order/Orders and/or direction/directions be passed as this Tribunal may deem fit and proper.
4. Background of the case
I. An application under section 95 of IBC, 2016 was filed by Central Bank of India in Company Petition (IB) No.184/KB/2021 i.e. the Financial Creditor of the Corporate Debtor- BRG Iron and Steel Company Pvt Ltd before this NCLT, Kolkata to initiate Personal Insolvency Resolution Process against Mr. Jai Kumar Goyal, a personal guarantor.
II. On 21.04.2022 this NCLT, Kolkata Bench passed an order appointing Mr. Rajesh Keshri as the Resolution Professional in exercise of the power conferred under section 97 of the IBC, 2016.
III. That the applicant had informed the Personal Guarantor about admission of the case under Section 100 of Insolvency and Bankruptcy Code, 2016 through mail and hand delivery and requested to provide documents as per the list of documents & information for preparation of Statement of Affairs through e- mails on various dates.
IV. That Mr. Sandeep Goyal, one of the other/co- guarantors/Personal Guarantor of the Principal Borrower also under insolvency in CP(IB) 187 OF 2021, had submitted a Joint Repayment plan for all the four Personal Guarantors namely, Anjani Kumar Goyal, CP(IB) No. 188/KB/2021; Mr. Sandeep Goyal, CP(IB) 187 OF 2021; Mr. Jai Kumar Goyal, CP(IB) 184 OF 2021, Mr. Himanshu Goyal, CP(IB) 185 OF 2021 on 13.04.2024, Subsequently he authorized Mr. Anil Kumar Mohta to represent him and all other Personal guarantors in the Committee of Creditors for submission and discussion of the said Plan. The Plan was discussed in the 3rd Meeting of Creditor held on 02.05.2024 but could not be suitably discussed and it was decided to call a meeting on 06.05.2024 for further discussion.
V. That the above plan was discussed on 4th Meeting of Creditors held on 06.05.2024 wherein the Personal Guarantors wanted to submit a "Revised Joint Plan". Hence the meeting was adjourned to 10.05.2024. However, on 10.05.2024, the Personal Guarantors informed the members through email that they require 4-5 days to prepare the Revised Plan and stated that they will not be represented in this Adjourned 4th Meeting.
VI. That a Joint Repayment Plan dated 14.05.2024 was submitted by the Personal Guarantors which was discussed in the 5th Meeting and 6th Meeting of Creditors held on 18.05.2024 and 16.07.2024 respectively. It was decided by the members to convene the next meeting after obtaining the internal approval/rejection of the said plan.
VII. That a letter dated 30.08.2024 was discussed in the 7th Meeting of Creditors held on 05.09.2024 along with the Joint Repayment Plan. In view of Joint Repayment Plan submitted by all the four Personal Guarantors, CoC decided that in place of the existing procedure of conducting a separate CoC Meeting, a consolidated CoC Meeting shall be conducted by the Applicant herein, in which the le
