# In the matter of Jhamb Enterprises Private Limited

> NCLT judgment dated 9 Sept 2024. Citation: TCN-2024-NCLT-00637. Rajdeep Jain, the Financial Creditor, filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Sept 2024
- **Citation:** TCN-2024-NCLT-00637
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jhamb-enterprises-private-limited-fd86e350

## Summary

### Background

Rajdeep Jain, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Jhamb Enterprises Private Limited, the Corporate Debtor. The Financial Creditor had acted as a personal guarantor for the Corporate Debtor's financial facilities availed from the State Bank of India. The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) by the State Bank of India due to its failure to maintain credit facilities.

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## Facts

Rajdeep Jain, the Petitioner and Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against M/s Jhamb Enterprises Private Limited, the Corporate Debtor. The Corporate Debtor, incorporated on December 22, 1992, under the Companies Act, 1956, has its registered office in Ludhiana, within the Tribunal's jurisdiction. Its authorized share capital is Rs. 6,00,00,000/-, and paid-up share capital is Rs. 4,77,43,160/-.

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## Issues and analysis

### Issue 1: Whether the Petitioner, as a guarantor who discharged the Corporate Debtor's liability, is entitled…

**Ratio:** A guarantor who discharges the debt of a corporate debtor to a financial creditor is…

**Reasoning:** The Tribunal reasoned that the Petitioner, by paying the Corporate Debtor's debt to the…

**Interpretation:** The Tribunal interpreted **Section 140 of the Contract Act, 1872**, and…

**Application:** The Petitioner, Rajdeep Jain, as a guarantor, paid Rs. 1,85,00,000/- to the…

## Parties

- **Judges:** Harnam Singh…; ARVIND DEVA…
- **Advocates:** For the Applicant:…; For the Respondent…

## Timeline

- **December 22, 1992 — Incorporation of…**: M/s Jhamb Enterprises Private Limited was…
- **August 25, 2014 — SBI Letter regarding…**: State Bank of India sent a letter listing the Petitioner's property as collateral…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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