# In the matter of Ajit Singh Kochar, CP (IB) No. 245/Chd/Pb/2022

> NCLT judgment dated 2023-01-31. Citation: TCN-2023-NCLT-04845. The case pertains to an application filed by Ajit Singh Kochar, a personal guarantor, under…

- **Court:** NCLT
- **Order date:** 31 Jan 2023
- **Citation:** TCN-2023-NCLT-04845
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ajit-singh-kochar-cp-ib-no-245chdpb2022-861fa3f8

## Summary

### Background

The case pertains to an application filed by Ajit Singh Kochar, a personal guarantor, under Section 94 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the Insolvency Resolution Process against himself. Kochar is the personal guarantor to M/s. Kochar Overseas Private Limited, the corporate debtor, which availed a loan of Rs. 43 crores from Punjab National Bank. The corporate debtor defaulted on the loan, leading Punjab National Bank to invoke the personal guarantee extended by Kochar. An earlier Corporate Insolvency Resolution Process (CIRP) was initiated against Kochar Overseas Private Limited, and the company is currently under liquidation. The Resolution Professional (RP) was appointed to examine the application and submit a report.

## Facts

Ajit Singh Kochar is the personal guarantor for a loan of Rs. 43 crores availed by M/s. Kochar Overseas Private Limited (Corporate Debtor) from Punjab National Bank. The Corporate Debtor defaulted on the loan, leading to its account being declared a Non-Performing Asset (NPA) on 13.11.2015. Punjab National Bank invoked the personal guarantee of Ajit Singh Kochar, demanding payment of Rs. 40,07,46,685.86 along with further interest from 30.09.2015. The Corporate Debtor is currently under liquidation following the acceptance of a CIRP application on 25.11.2017. Ajit Singh Kochar filed an application under Section 94 of the IBC, 2016, seeking initiation of the Insolvency Resolution Process against himself. The Resolution Professional (RP) was appointed and directed to

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## Issues and analysis

### Issue 1: Whether the application filed by Ajit Singh Kochar, the personal guarantor, under Section 94 of the …

**Ratio:** Section 94 of the IBC, 2016 allows a debtor to apply for initiating the insolvency

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**Reasoning:** The court considered the RP's report, which confirmed that the application was filed in

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**Interpretation:** Section 94 provides a mechanism for personal guarantors to initiate insolvency

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**Application:** The court found that the application was filed in the correct form, with the

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Ajit Singh…
- **Respondents:** Kochar Overseas…

## Timeline

- **2015-11-13 — NPA Decla…**: The account of Kochar Overseas Private Limited was declared as a Non-Performing Asset…
- **2015-11-13 — Recall N…**: Punjab National Bank issued a recall notice under Section 13(2) of the SARFAESI Act,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 94 — Application by debtor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-94)

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