# In the matter of Punjab National Bank vs. Bhabani Prasad Mukherjee

> NCLT judgment dated 2025-06-20. Citation: TCN-2025-NCLT-00878. Punjab National Bank initiated insolvency proceedings against Bhabani Prasad Mukherjee, the…

- **Court:** NCLT
- **Order date:** 20 Jun 2025
- **Citation:** TCN-2025-NCLT-00878
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/punjab-national-bank-vs-bhabani-prasad-mukherjee-9d215349

## Summary

### Background

Punjab National Bank initiated insolvency proceedings against Bhabani Prasad Mukherjee, the personal guarantor to a loan availed by Purulia Metal Casting Pvt. Ltd. The corporate debtor defaulted on its loan repayments, leading the bank to invoke the personal guarantee. The resolution professional was appointed, and a public announcement was made.

## Facts

Punjab National Bank extended credit facilities to Purulia Metal Casting Pvt. Ltd.

Bhabani Prasad Mukherjee provided a personal guarantee to secure the loan granted to Purulia Metal Casting Pvt. Ltd.

Purulia Metal Casting Pvt. Ltd. defaulted on its loan repayments, leading to the account being classified as NPA.

Punjab National Bank invoked the personal guarantee of Bhabani Prasad Mukherjee.

Bhabani Prasad Mukherjee failed to pay the outstanding dues despite the invocation of the personal guarantee.

An application was filed under Section 95 of the IBC, 2016 to initiate the Insolvency Resolution Process against Bhabani Prasad Mukherjee.

The tribunal admitted the application and appointed a resolution professional.

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## Issues and analysis

### Issue 1: Whether the Insolvency Resolution Process of the Personal Guarantor should be concluded due to the …

**Ratio:** Section 112 of the IBC, 2016 read with Regulation 19(1) of the IBBI (Insolvency

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**Reasoning:** The Personal Guarantor was deliberately avoiding to meet the applicant and has no

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**Interpretation:** The absence of a repayment plan filed by the personal guarantor prevents the

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**Application:** The Resolution Professional's report under section 112 IBC states that the

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## Parties

- **Judges:** Labh S…; Rekha Kantilal…
- **Appellants:** Punjab National…; Rajnandan…
- **Respondents:** Purulia Metal…; Bhabani Prasad…

## Timeline

- **2023-03-31 — NPA Decla…**: Loan account of the corporate debtor…
- **2023-04-05 — Invocation of…**: Financial Creditor invoked the personal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 105 — Repayment plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-105)

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