# Asset Reconstruction Company (India) Limited vs. Mr. Umesh Garg & Committee of Creditors of JCT Limited

> NCLT judgment dated 2026-07-10. Citation: TCN-2026-NCLT-00676. JCT Electronics Limited (JCTEL), a subsidiary of JCT Limited (the Corporate Debtor), availed…

- **Court:** NCLT
- **Order date:** 10 Jul 2026
- **Citation:** TCN-2026-NCLT-00676
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/asset-reconstruction-company-india-limited-vs-mr-umesh-garg-committee-of-credito-mhirn

## Summary

### Background

JCT Electronics Limited (JCTEL), a subsidiary of JCT Limited (the Corporate Debtor), availed credit facilities from IFCI Limited between 1993 and 1998, with JCT Limited providing corporate guarantees. IFCI classified JCTEL's loan as a Non-Performing Asset (NPA) in 2001, invoked the corporate guarantee in 2002, and filed a recovery application before the Debts Recovery Tribunal (DRT). JCTEL was declared a sick industrial undertaking by BIFR in 2005, and a rehabilitation scheme was sanctioned in 2007. IFCI assigned the loan account and guarantees to Asset Reconstruction Company (India) Limited (ARCIL) in 2015. The BIFR scheme failed, and JCTEL was ordered to be wound up in 2016. The Corporate Insolvency Resolution Process (CIRP) against JCT Limited commenced on

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## Facts

Asset Reconstruction Company (India) Limited (ARCIL) is a company incorporated under the Companies Act, 1956, and registered as an Asset Reconstruction Company under the SARFAESI Act, 2002.

JCT Electronics Limited (JCTEL), a subsidiary of JCT Limited (the Corporate Debtor), availed three distinct credit facilities from IFCI Limited between 1993 and 1998.

JCT Limited executed irrevocable, unconditional, and continuing corporate guarantees in favour of IFCI Limited, making itself jointly and severally liable for repayment upon default by JCTEL.

IFCI classified JCTEL's loan account as a Non-Performing Asset (NPA) on 14.10.2001.

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## Issues and analysis

### Issue 1: Whether, in the facts and circumstances of the present case, the Resolution Professional acted …

**Ratio:** The Resolution Professional's role in claim verification is a substantive duty, not

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**Reasoning:** Section 18(1)(b) of the IBC and Regulations 13 and 14 of the CIRP Regulations empower the

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**Interpretation:** The statutory framework grants the RP the authority to conduct due diligence

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**Application:** The RP's rejection of ARCIL's claim was a lawful exercise of his statutory

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## Parties

- **Judges:** SH. KHETRABASI…; Sh. Shishir…
- **Appellants:** Asset Reconstructi…; Arcil-JCT III…; +1 more
- **Respondents:** JCT Lim…; Umesh…; +2 more
- **Other parties:** IFCI Li…; Hasti Mal K…; +1 more
- **Advocates:** Munisha G…; Abhinav…; +10 more

## Timeline

- **1993-09-01 — Guarantee Deed…**: Guarantee Deed executed by JCT…
- **2001-10-14 — NPA Classif…**: Loan account of the principal borrower,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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