# In the matter of Jhamb Enterprises Private Limited

> NCLT judgment dated 2024-09-09. Citation: TCN-2024-NCLT-00639. The case involves a petition filed by Rajdeep Jain, the Financial Creditor, under Section 7 of…

- **Court:** NCLT
- **Order date:** 9 Sept 2024
- **Citation:** TCN-2024-NCLT-00639
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jhamb-enterprises-private-limited-8d0b20bb

## Summary

### Background

The case involves a petition filed by Rajdeep Jain, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Jhamb Enterprises Private Limited, the Corporate Debtor. Rajdeep Jain, acting as a personal guarantor, discharged the Corporate Debtor's liability to the State Bank of India (SBI) and thus stepped into the shoes of the original financial creditor through subrogation. The Corporate Debtor defaulted on its credit facilities, leading to its account being classified as NPA by SBI. A compromise settlement was proposed but not fully executed by the Corporate Debtor.

## Facts

Rajdeep Jain, the petitioner, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Jhamb Enterprises Private Limited, the corporate debtor. Rajdeep Jain acted as a personal guarantor for the corporate debtor's loan account with State Bank of India (SBI). The corporate debtor defaulted on its credit facilities, leading to its account being classified as NPA by SBI. A compromise settlement was proposed on 2021-09-03 but the corporate debtor failed to make the balance payment. Rajdeep Jain, as the guarantor, submitted a cheque for Rs. 1,85,00,000 on 2021-10-26 to SBI to discharge the liability and release his property from mortgage. SBI realized the amount and released the

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## Issues and analysis

### Issue 1: Whether the present petition is …

**Ratio:** The limitation period for filing a petition under Section 7 of the IBC is three years

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**Reasoning:** The court noted that the date of default relied upon by the financial creditor is

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**Interpretation:** The court interpreted the limitation period as starting from the date of

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**Application:** Since the petition was filed within three years from the date of default, the

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## Parties

- **Judges:** Sh. Harnam Singh…; SH. ARVIND…
- **Appellants:** Rajdeep…
- **Respondents:** M/s Jhamb…

## Timeline

- **1992-12-22 — Incorporation of…**: M/s Jhamb Enterprises Private Limited…
- **2014-08-25 — 13(2)-notice issued by…**: Copy of the 13(2)-notice dated 25.08.2014 and 13(4)-notice of the SARFAESI Act, 2002…

## 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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