# In the matter of JM Financial Asset Reconstruction Co Ltd Vs. Annu Mathew, CP (IBC)/16/KOB/2021

> NCLT judgment dated 27 Sept 2021. Citation: TCN-2021-NCLT-01000. The petitions were filed by the financial creditor, M/s. JM Financial Asset Reconstruction…

- **Court:** NCLT
- **Order date:** 27 Sept 2021
- **Citation:** TCN-2021-NCLT-01000
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jm-financial-asset-reconstruction-co-ltd-vs-annu-mathew-cp-44ccdfb4

## Summary

### Background

The petitions were filed by the financial creditor, M/s. JM Financial Asset Reconstruction Company Limited, under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, against several personal guarantors of the corporate debtor, M/s. Unitek Power Solutions India Limited, for initiating insolvency resolution processes.

## Facts

M/s. Unitek Power Solutions India Limited, the Corporate Debtor, obtained credit facilities including Cash Credit, Bank Guarantee, and Term Loan (IPS) from Federal Bank Limited. As of May 31, 2021, the total default amount was Rs. 38,56,65,007.80. The Corporate Debtor failed to meet its debt obligations, leading to the account being classified as a Non-Performing Asset (NPA) in the bank's records, in accordance with RBI guidelines. The loans were secured by charges over properties belonging to various guarantors and co-obligors.

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## Issues and analysis

### Issue 1: Whether the personal guarantors are liable for the…

**Ratio:** Personal guarantors are liable to pay for the default committed by the Corporate Debtor…

**Reasoning:** The personal guarantors had executed several guarantee agreements, undertaking to…

**Interpretation:** The court interpreted the guarantee agreements as creating a direct and…

**Application:** Given the Corporate Debtor's default and the personal guarantors' failure to…

## Parties

- **Judges:** RAJESH S…; Ashok Kumar…
- **Advocates:** For Petitioner/Cre…; Shri. Sunil…; +1 more

## Timeline

- **November 20, 2008 — Guarantee Ag…**: Date of one of the guarantee…
- **February 27, 2010 — Guarantee Ag…**: Date of another guarantee agreement…

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