NCLT Grants Discharge to Personal Guarantor After Full Implementation of Repayment Plan Under IBC

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.