Paramjit

● “………The Corporate Debtor Kochar Overseas Private Limited had availed loan of Rs.24,38,28,000/ (Rupees Twenty-Four Crores Thirty-Eight Lakhs Twenty-Eight Thousand only) from the Punjab National Bank, and to secure this debt Smt. Paramjit Kaur Kochar extended her Personal Guarantee. This Deed of Guarantee further provided that in event of failure of Corporate Debtor to repay the loan, the Personal Guarantor shall be jointly severally and co- extensively liable to repay back the entire loan outstanding along with any outstanding interest and penal interest.

● That, the said Corporate Debtor committed default in its loan account and the account was declared as Non-Performing Asset (NPA) on 13.11.2015, thereafter recall notice under Section 13(2) of SARFAESI ACT, 2002 was issued to the Corporate Debtor, Directors and Personal Guarantors. A Copy of the said 13(2) notice dated 13.11.2015 is annexed herewith as ANNEXURE A -3.

● Thereafter Punjab National Bank vide 13(2) notice dated 13.11.2015 invoked the Personal Guarantee executed by Smt. Paramjit Kaur Kochar, while informing that the Corporate Debtor had failed to repay the instalments of Principal and Interest in respect of Loan Facility which had fallen due since 30.09.2015, thereby in terms of the Guarantee Deed called upon the Personal Guarantor to pay as sum of Rs.40,07,46,685.86/ (Rupees Forty crores Seven Lakhs, Forty Six Thousand Eighty Five and paise Eighty Six only) with further interest thereon from 30.09.2015 at contractual rates until date of realization. Failure of both the Corporate Debtor and Personal Guarantor to repay the said dues, Punjab National Bank in its capacity of secured creditor took appropriate measures under the provisions of Section 13(4) of the SARFAESI ACT, 2002 and took symbolic possession of the mortgaged properties and the same were sold by the Punjab National Bank, according to the applicant shed does not any information regarding the amount received by Punjab National Bank from this sale.

● That meanwhile, an CP(IB)No.108/Chd/Pb/2017 was filed by the Corporate Debtor, Kochar Overseas Private Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016 before the Hon’ble National Company Law Tribunal, Chandigarh, and the same was accepted on 25.11.2017. At present Kochar Overseas Private Limited is under Liquidation.

● The Resolution Professional after examining the Insolvency Application has sought specific information regarding the status of repayment to Creditors as mentioned in the application filed by Smt. Paramjit Kaur Kochar.

● The applicant has informed the Resolution Professional that no payment has been made to Punjab National Bank in the interim and the outstanding figures remains the same as on date of filing this application under Section 94(1).

● The applicant has also informed that Central Bureau of Investigation has filed an FIR against the Company and its Directors including herself for defrauding Punjab National Bank, Hall Bazaar, Amritsar to the tune of Rs. 4007.47 Lakhs.

● The applicant also clarified that her Personal Guarantee was also given against loan sanctioned to another Corporate Debtor “Kochar Fibres Limited” but the said account has been settled through One Time Settlement.

“COMPLIANCE IN TERMS OF SECTION 94 OF THE CODE READ WITH SECTION 99 (6) (A) OF THE CODE

	PROVISIONS	COMPLIANCES
	SECTION 94(1) OF THE CODE A debtor who commits a default may apply, either personally or through a resolution professional, to the Adjudicating Authority for initiating the insolvency resolution process, by submitting an application	The application has been filed by the Personal Guarantor. through Resolution Professional, Shri. Bishwa Ranjan Chatterjee
	SECTION 94(3) OF THE CODE An application under sub-section (1) shall be submitted only in respect of debts which are not excluded debts	The RP has gone through the application and confirm that the Application is accompanied with details and documents evidencing the default / non-repayment of debt.
	SECTION 94(4) OF THE CODE A debtor shall not be entitled to make an application under sub-section (1) if he is (a) an undischarged bankrupt; (b) undergoing a fresh start process; (c) undergoing an insolvency resolution process; or (d)undergoing a bankruptcy process.	The RP confirms that the applicant does not fall under any category of Section 94(4)
CP (IB) No.246/Chd/Pb/2022
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	Section 94(5) OF THE CODE A debtor shall not be eligible to apply under sub-section (1) if an application under this Chapter has been admitted in respect of the debtor during the period of twelve months preceding the date of submission of the application under this section.	The RP confirms that no application has been admitted in respect of the debtor during the period of 12 months preceding the date of submission of Application.
	Section 94(6) OF THE CODE The application referred to in sub-section (1) shall be in such form and manner and accompanied with such fee as may be prescribed	Yes, the Application has been filed in Form A as per Rule 6(1) of The Insolvency and Bankruptcy Board of India (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 and the applicant has paid the prescribed fee.

COMPLIANCE IN TERMS OF SECTION 94 OF THE CODE READ WITH SECTION 99 (6)(A)(B) OF THE CODE

PROVISIONS	COMPLIANCES
SECTION 99(1) OF THE CODE The resolution professional shall examine the application referred to in section 94 or section 95, as the case may be, within ten days of his appointment, and submit a report to the Adjudicating Authority recommending for approval or rejection of the application.	The Resolution Professional downloaded the NCLT order of 15.9.2022 on 21.09.2022 and has submitted his report to the Adjudicating Authority within the time period specified in the order dated 15.9.2022
SECTION 99(4) OF THE CODE For the purposes of examining an application, the resolution professional may seek such further information or explanation in connection with the application as may be required from the debtor or the creditor or any other person who, in the opinion of the resolution professional, may provide such information	The Resolution Professional has sought for additional information from the Debtor to seek clarifications regarding information in the application filed by the Personal Guarantor

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	SECTION 99(5) OF THE CODE The person from whom information or explanation is sought under sub-section (4) shall furnish such information or explanation within seven days of receipt of the request	The RP confirms that he has got all the information and explanation as per the time period prescribed in the Section 99(5) of the IBC Code 2016
	SECTION 99(6) (a) OF THE CODE The resolution professional shall examine the application and ascertain that -(a) the application satisfies the requirements set out in section 94 or 95;	The Resolution Professional Confirms that the application satisfies the requirements set out in section 94 of the code
	SECTION 99 (6) (b) OF THE CODE The applicant has provided information and given explanation sought by the resolution professional under sub-section (4).	The Resolution Professional confirms that the applicant has cooperated with him and has given all information
	SECTION 99(7) OF THE CODE After examination of the application under sub-section (6), he may recommend acceptance or rejection of the application in his report.	Resolution Professional confirms that this section has been complied with.
	SECTION 99 (9) OF THE CODE The resolution professional shall record the reasons for recommending the acceptance or rejection of the application in the report under sub-section (7).	Resolution Professional confirms that this section has been complied
	SECTION 99 (10) OF THE CODE The resolution professional shall give a copy of the report under sub-section (7) to the debtor or the creditor, as the case may be.	Resolution Professional confirms that this section has been complied

In view of the above facts and circumstances, Bishwa Ranjan Chatterjee, the Resolution Professional appointed by this Hon’ble Tribunal, vide order dated 15.09.2022 in C.P. (IB) NO. 246/CHD/Pb/ 2022, had confirmed that, he had perused/examined all the underlying documents and annexure and all the parameters are duly complied as per the provision of IBC and all the requisite & requirement under section 94 are duly met with, therefore, the Resolution Professional is of the considered opinion that the application filed by the applicant for initiation of Insolvency Resolution Process against Smt. Paramjit Kaur Kochar, Personal Guarantor to the Corporate Debtor Kochar Overseas Private Limited is in compliance with the provisions of the Code. Hence, the Resolution Professional considering the requirements of the admission of Personal Guarantee as stipulated in the Code recommends under section 99 (7) for approval of the application for initiation of Insolvency Resolution Process against Smt. Paramjit Kaur Kochar, Personal Guarantor to the Creditors of Kochar Overseas Private Limited on the following reasons:

1.

That the Application filed by Smt. Paramjit Kaur Kochar, through Resolution Professional Shri. Bishwa Ranjan Chatterjee (Resolution Professional) satisfies the requirement as set out in Section 94 of the Code;

2.

That the Corporate Debtor have committed default in repayment of Loan Facility granted by the Punjab National Bank and other creditors. That Smt. Paramjit Kaur Kochar, Personal Guarantor to Corporate Debtor has also committed default in repayment of Loan Facility demanded by Punjab National Bank after invocation of personal guarantee. She has confirmed that she has not made any payment to any secured or unsecured creditor of Kochar Overseas Private Limited in her personal capacity.

3.

The Insolvency Application has been filed in the requisite Form A, in terms of rule 6(1) of the Insolvency and Bankruptcy Board of India (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules,2019 and the applicant has paid the requisite fees.

4.

The Insolvency Application satisfies the requirements set out in Section 94 of the IBC Code, 2016

5.

The Insolvency Application does not relate to “excluded debts” as defined under section 79(15) of the IBC Code, 2016

6.

The Personal Guarantor to the Corporate Debtor, is not eligible for fresh start under Chapter II of the code”.