# In the matter of Puneet Resutra vs. Jammu & Kashmir Bank Ltd.

> NCLAT judgment dated 2025-07-03. Citation: TCN-2025-NCLAT-00341. The appeal was filed by Mr. Puneet Resutra, the erstwhile Director of M/s Ace Engineering…

- **Court:** NCLAT
- **Order date:** 3 Jul 2025
- **Citation:** TCN-2025-NCLAT-00341
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/puneet-resutra-vs-jammu-kashmir-bank-ltd-0739670a

## Summary

### Background

The appeal was filed by Mr. Puneet Resutra, the erstwhile Director of M/s Ace Engineering (India) Private Limited, challenging the order of the National Company Law Tribunal (NCLT), Chandigarh Bench, which admitted a Section 7 application filed by Jammu & Kashmir Bank Ltd. initiating CIRP against Ace Engineering.

## Facts

Ace Engineering (India) Private Limited availed two credit facilities from Jammu & Kashmir Bank Ltd.: a Cash Credit facility of Rs.9 Crores and a Secured Overdraft facility of Rs.4 Crores.

The credit facilities were secured by personal guarantees and immovable properties of Shri Siddharth Bhatia and Shri Munish Bhatia, who were directors of the company.

On 31.03.2016, both loan accounts were classified as Non-Performing Assets (NPAs).

On 20.04.2016, an Agreement to Sell and Power of Attorney was executed between the Corporate Debtor and the guarantors, where the Corporate Debtor agreed to transfer 175 Kanals of land in lieu of the guarantors taking over responsibility for repayment.

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## Issues and analysis

### Issue 1: Whether a legally enforceable financial debt was due and payable by the Corporate Debtor on the …

**Ratio:** The OTS with the guarantors did not amount to full and final satisfaction of the loan

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**Reasoning:** The Bank expressly retained its right to recover the balance amount from the Corporate

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**Interpretation:** The liability of the guarantor is co-extensive with that of the principal

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**Application:** A legally enforceable financial debt existed as on 07.01.2019, and the same was

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## Parties

- **Judges:** Indevar P…; Rakesh Kuma…; +1 more
- **Appellants:** Puneet Re…
- **Respondents:** Ace Engineering…; Jammu & Kashmir…
- **Other parties:** Siddharth…; Munish B…
- **Advocates:** Amar V…; Aditya…; +4 more

## Timeline

- **2016-03-31 — NPA Decla…**: Loan accounts classified as…
- **2016-04-20 — Agreement t…**: Agreement to Sell and Power of Attorney…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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