# In the matter of JM Financial ARC Ltd. vs. Korah John

> NCLT judgment dated 2023-06-28. Citation: TCN-2023-NCLT-02772. The case involves an application arising from the insolvency resolution process of the Personal…

- **Court:** NCLT
- **Order date:** 28 Jun 2023
- **Citation:** TCN-2023-NCLT-02772
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jm-financial-arc-ltd-vs-korah-john-70510905

## Summary

### Background

The case involves an application arising from the insolvency resolution process of the Personal Guarantor, Mr. Korah John, to Unitek Power Solutions India Ltd., the Corporate Debtor. The Resolution Professional (RP), CA Francis Mathew, filed an application seeking an order from the Adjudicating Authority to record the RP's report stating that the Personal Guarantor failed to submit a repayment plan, leading to the creditors being entitled to proceed with bankruptcy. The insolvency resolution process against Mr. Korah John was initiated, and a public announcement was made inviting claims from creditors. The Financial Creditor (FC) who initiated the IRP submitted a claim, but the RP initially rejected it, concluding that the Personal Guarantor was not liable for the

…

## Facts

The key facts are as follows: An insolvency resolution process was initiated against Mr. Korah John, the Personal Guarantor to Unitek Power Solutions India Ltd. The Resolution Professional (RP), CA Francis Mathew, filed an application because Mr. Korah John failed to submit a repayment plan. A public announcement was made on 2022-03-07, inviting claims from creditors. JM Financials Assets Reconstruction Company Limited, the Financial Creditor (FC), submitted a claim. Initially, the RP rejected the claim, stating the Personal Guarantor was not liable for the Corporate Debtor's loan, amounting to Rs. 3.35 crores. The Adjudicating Authority directed the RP to accept the claim on 2023-12-23. Mr. Korah John informed the RP that he did not intend to submit a repayment plan

…

## Issues and analysis

### Issue 1: Whether the failure of the Personal Guarantor to submit a repayment plan justifies allowing the …

**Ratio:** The ratio is that the non-filing of a repayment plan by the debtor/personal guarantor,

…

**Reasoning:** The court reasoned that since the debtor did not file a repayment plan despite being

…

**Interpretation:** The interpretation of the IBC provisions, specifically sections 114 and 115, is

…

**Application:** The ratio and reasoning were applied to the specific facts of the case, where

…

## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** CA Francis…
- **Respondents:** Unitek Power…

## Timeline

- **2022-02-21 — Application A…**: The application was admitted by…
- **2022-03-07 — Public Annou…**: A public announcement was made intimating the commencement of the insolvency resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 112 — Report of meeting of creditors on repayment plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-112)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jm-financial-arc-ltd-vs-korah-john-70510905