# Mr. Babu Manoharan Jaikumar Christhurajan vs. Mr. Umesh Garg, Liquidator of Jeppiaar Cements Pvt. Ltd. & Ors.

> NCLAT judgment dated 2026-08-24. Citation: TCN-2026-NCLAT-00252. Indian Bank initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Jeppiaar…

- **Court:** NCLAT
- **Order date:** 24 Aug 2026
- **Citation:** TCN-2026-NCLAT-00252
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/ts-party-babu-manoharan-jaikumar-christhurajan-vs-ms-jeppiaar-cements-private-li-knbko

## Summary

### Background

Indian Bank initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Jeppiaar Cements Private Limited (Corporate Debtor) as a corporate guarantor for loans availed by M/s. Jeppiaar Power Corporation Ltd. An Interim Resolution Professional (IRP) was appointed and later retained as Resolution Professional (RP). The Committee of Creditors (CoC), comprising Indian Bank and HDFC Bank, discussed liquidation but did not vote in favor. Indian Bank had sanctioned a One-Time Settlement (OTS) to the directors/personal guarantors of the principal borrower, with partial payment made. Despite this, the RP filed an application under Section 33(1) of the IBC for liquidation, allegedly based on advice from the Tribunal's Registry. The Adjudicating Authority ordered

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## Facts

On 27.06.2013, M/s. Jeppiaar Power Corporation Ltd. availed a term loan of ₹92.50 crores from M/s Indian Bank.

M/s. Jeppiaar Cements Private Limited (the corporate debtor) stood as a corporate guarantor for this loan.

On 05.08.2016, the principal borrower availed another loan of ₹48.50 crores from Indian Bank, for which the corporate debtor also offered a corporate guarantee.

The principal borrower defaulted on the loan repayment.

Indian Bank filed an application under Section 7 of IBC against the corporate guarantor, M/s. Jeppiaar Cements Private Limited.

On 10.10.2019, the Adjudicating Authority allowed the petition, drawing the corporate guarantor into CIRP.

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## Issues and analysis

### Issue 1: Whether the order of liquidation passed under Section 33(1) of the IBC is sustainable given the …

**Ratio:** The order of liquidation passed by the Adjudicating Authority is not sustainable because

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**Reasoning:** The CoC, in its 11th meeting, did not vote in favour of liquidation. The RP's application

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**Interpretation:** Section 33(2) requires a 66% vote of the CoC for the RP to move an application

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**Application:** The NCLAT found that the circumstances surrounding the liquidation order,

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## Parties

- **Judges:** N. Seshasayee,…; Jatindranath…
- **Appellants:** Babu Manoharan…; Indian…
- **Respondents:** M/s. Jeppiaar…; Umesh Garg,…
- **Other parties:** M/s. India…; M/s. HDFC…; +3 more
- **Advocates:** Mr T.K. B…; Ravi Rajag…; +5 more

## Timeline

- **2013-06-27 — Loan Availed by…**: M/s. Jeppiaar Power Corporation Ltd. availed a term loan of ₹92.50 crores from M/s Indian…
- **2016-08-05 — Second Loan Availed by…**: The principal borrower availed another loan of ₹48.50 crores from Indian Bank, with the…

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