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

> NCLT judgment dated 2025-06-20. Citation: TCN-2025-NCLT-00882. Punjab National Bank initiated insolvency proceedings against Bhabani Prasad Mukherjee, the…

- **Court:** NCLT
- **Order date:** 20 Jun 2025
- **Citation:** TCN-2025-NCLT-00882
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/punjab-national-bank-vs-bhabani-prasad-mukherjee-da7e3783

## 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 loan repayments, leading to the invocation of the personal guarantee. The Resolution Professional (RP) was appointed and a public announcement was made.

## Facts

Punjab National Bank extended credit facilities to Purulia Metal Casting Pvt. Ltd., with Bhabani Prasad Mukherjee acting as the personal guarantor.

The corporate debtor defaulted on loan repayments, leading to the account being classified as NPA on 31.03.2023.

The Financial Creditor invoked the personal guarantee on 05.04.2023, demanding Rs. 75,16,58,814.64.

Company Petition (IB) No. 244 (KB) of 2024 was filed under section 95 of the IBC Code 2016 to initiate Insolvency Resolution Process against the Personal Guarantor.

The application was admitted on 24.10.2024, and a Resolution Professional was appointed.

The Personal Guarantor failed to submit a repayment plan despite multiple attempts by the RP and creditors.

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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 failed to submit a repayment plan despite sufficient opportunity

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**Interpretation:** In the absence of a repayment plan, the Insolvency Resolution Process of the

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**Application:** The Adjudicating Authority allowed the application, concluding the Insolvency

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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…
- **2023-04-05 — Invocation of…**: Financial Creditor invoked…

## 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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