# In the matter of Kiran Kumar Jain vs. Cosmos Co-Operative Bank Ltd. & Anr.

> NCLAT judgment dated 2025-09-02. Citation: TCN-2025-NCLAT-00475. This appeal challenges the order dated 01.07.2025 passed by the adjudicating authority…

- **Court:** NCLAT
- **Order date:** 2 Sept 2025
- **Citation:** TCN-2025-NCLAT-00475
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kiran-kumar-jain-vs-cosmos-co-operative-bank-ltd-anr-1f26322f

## Summary

### Background

This appeal challenges the order dated 01.07.2025 passed by the adjudicating authority (National Company Law Tribunal, Mumbai Bench – I) admitting Section 95 application filed by the financial creditor, Cosmos Cooperative Bank Limited & Anr.

## Facts

Cosmos Cooperative Bank Limited granted credit facilities to Dilip Chabria Design Private Ltd.

A cash credit limit of ₹16 crore and term loan facilities of ₹22 crore were sanctioned on 25.06.2014, secured by personal guarantee dated 28.07.2014.

Existing facilities were renewed, and guarantee deeds were issued on 29.09.2015 and 26.11.2015.

A fresh loan agreement was executed on 02.03.2016, and a deed of guarantee was executed on the same date by personal guarantors, including the appellant.

A promissory note for ₹44 crore was issued on 02.03.2016 by personal guarantors, including the appellant.

The corporate debtor failed to honour repayment obligations, leading to a call back notice by the financial creditor on 31.08.2018.

…

## Issues and analysis

### Issue 1: Whether the appellant is liable under the guarantee, considering the argument that no disbursement …

**Ratio:** The guarantee covered facilities already granted, and the bank proved disbursement and

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**Reasoning:** The loan agreement and other documents indicated that the guarantee was for existing

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**Interpretation:** The guarantee is interpreted to cover existing facilities, and the appellant is

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**Application:** The appellant's submission that no disbursal of ₹44 crore was made subsequent

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Kiran Kuma…
- **Respondents:** Dilip Chabria…; Cosmos Co-Operativ…
- **Other parties:** Dilip Harikishin…; Cosmos Cooperative…; +1 more
- **Advocates:** Arun Kath…; Abhijeet…; +13 more

## Timeline

- **2014-06-25 — Sanction of Credit…**: Cash credit limit of ₹16 crore and term loan…
- **2014-07-28 — Personal Gu…**: Repayment of facilities…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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