NCLT Grants Discharge to Personal Guarantor After Full Implementation of Repayment Plan Under IBC
Court / Authority
NCLT & NCLAT
Update / Judgement Date
19 Jun 2026
Source
WCP News Bulletin
Author
Manas Yadav — WCP Legal Desk
Reading Time
2 min read
View Count
Background
The National Company Law Tribunal, Principal Bench, New Delhi, has granted a discharge to Mr. Amrit Pal Singh Chadha, personal guarantor to C&C Construction Limited, after recording full implementation of a repayment plan under Part III of the Insolvency and Bankruptcy Code, 2016. The Bench allowed IA-6337/2025 and IA-6256/2025, filed by the Resolution Professional Mr. Deepak Maini, under Sections 117 and 119 of the IBC, seeking (i) taking on record the completion report of the repayment plan and (ii) issuance of a discharge order in favour of the personal guarantor.
The personal guarantor had stood guarantee for credit facilities extended by State Bank of India to C&C Construction Limited, which entered CIRP in 2019 and was later ordered into liquidation. SBI subsequently initiated personal insolvency proceedings under Section 95 of the IBC against the guarantor. Following admission under Section 100, a repayment plan was approved by creditors holding 77.50% voting share for an aggregate amount of ₹4.65 crore. The plan was approved by the NCLT on 18 July 2025 under Section 114, with an implementation period of 120 days. A Monitoring Committee was constituted, and the guarantor deposited the entire plan amount in three tranches, completing payments by 3 November 2025. After accounting for process costs, the Resolution Professional distributed the proceeds to creditors in proportion to their voting share. All creditors confirmed receipt of their dues without objection.
Findings and Order
Taking note of the Resolution Professional’s report under Section 117(1) and creditor confirmations, the NCLT held that the repayment plan stood fully implemented within time. The Bench observed that statutory requirements under Sections 117 and 119 were duly complied with and that the plan expressly provided for discharge upon complete implementation.
Accordingly, the Tribunal declared that Mr. Amrit Pal Singh Chadha stands discharged from all debts covered under the approved repayment plan, clarified that the discharge does not extend to co-obligors, closed the personal insolvency resolution process, and relieved the Resolution Professional of further duties.
Full Judgement / Attachment
Full Judgement
Frequently asked questions about NCLT & NCLAT
- What are the NCLT and NCLAT?
- The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) were constituted on 1 June 2016 under the Companies Act, 2013. The NCLT sits in benches across India, and the NCLAT hears appeals from it, with its principal bench in New Delhi and a bench in Chennai.
- What cases does the NCLT hear?
- The NCLT is the Adjudicating Authority for corporate insolvency under the IBC. It also hears company law matters, including oppression and mismanagement petitions, schemes of merger and demerger, reduction of capital, and class action suits.
- What is the time limit to appeal an NCLT order to the NCLAT?
- Under the Companies Act, the appeal is due within 45 days, extendable by up to 45 days. Under the IBC, it is due within 30 days, extendable by up to 15 days. These outer limits are strictly applied.
- How can I check NCLT case status or orders?
- Case status, cause lists and orders are available on the NCLT website (nclt.gov.in) and the NCLAT website (nclat.nic.in), searchable by case number, party name or bench.
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- Post your requirement on White Collar Professional to receive proposals from verified Company Secretaries, Insolvency Professionals and Advocates, compare them, and pay securely through the platform. This page also tracks the latest NCLT or NCLAT NCLT and NCLAT judgements as they are reported.
