Case Overview
This appeal, Company Appeal (AT) (CH) (Ins) No. 369/2026, challenges an order passed by the Adjudicating Authority (National Company Law Tribunal) under Section 100 of the Insolvency and Bankruptcy Code (IBC). The appellant, Amandeep Singh Bhatia, presented a two-fold defense against the order. First, he contended that the principal debt for which he had provided a personal guarantee stands fully discharged. The principal borrower was M/s Bhatia Coke and Energy, which was drawn into Corporate Insolvency Resolution Process (CIRP) by a consortium of lenders under Section 7 of the IBC. The total claim admitted in the Section 7 petition was Rs. 125,89,60,431.52. During the pendency of a petition filed under Section 95 against the appellant, the lenders recovered Rs. 139.44 crores, which exceeds the principal debt amount.
Second, the appellant argued that he never offered a personal guarantee for a specific part of the liability that the order sought to fasten on him. The corporate debtor (Bhatia Coke and Energy) had itself offered corporate guarantees to two of its group companies. The appellant maintains there is no privity of contract between him and the debts of these group companies, and he did not offer any collateral security for them. The NCLAT noted that the Adjudicating Authority had itself entered a finding in the appellant's favor on this second point, acknowledging he offered no guarantee for the group companies' debts, yet it eventually erred by fastening that liability on him.
Final Outcome
The NCLAT found a prima facie case in the appeal and issued notice to the respondents, The Assistant General Manager, State Bank of India & Anr. It granted an order of stay on the operation of the impugned NCLT order. Both sides are required to submit their notes of submission upon receipt of notice. The appeal has been listed for further hearing on 08 September 2026.
Topics: Personal Guarantee, Insolvency, Debt Discharge