Phoenix ARC Pvt. Ltd Vs JCT Limited (NCLT Chandigarh)
The National Company Law Tribunal (NCLT), Chandigarh Bench, dismissed the application filed by Asset Reconstruction Company (India) Limited (ARCIL), acting as trustee of ARCIL-JCT III Trust, challenging the Resolution Professional’s (RP) rejection of its financial creditor claim in the Corporate Insolvency Resolution Process (CIRP) of JCT Limited. ARCIL sought quashing of the RP’s letter dated 07.01.2026 rejecting its claim of ₹34,82,31,36,084, recognition of the claim as financial debt under Sections 5(7) and 5(8) of the Insolvency and Bankruptcy Code, 2016 (IBC), reconstitution of the Committee of Creditors (CoC), and consequential reliefs.
According to ARCIL, JCT Electronics Limited (JCTEL), a subsidiary of the Corporate Debtor, had availed multiple credit facilities from IFCI Limited between 1993 and 1998. JCT Limited executed unconditional and continuing corporate guarantees securing two of these facilities. Following JCTEL’s default, IFCI invoked the guarantees in January 2002, initiated proceedings before the Debts Recovery Tribunal (DRT), and subsequently assigned the debt and underlying securities, including the guarantees, to ARCIL in 2015. ARCIL submitted its claim during the CIRP, supported by loan documents, guarantees, assignment deed, DRT pleadings, and computation of dues. Initially, the Interim Resolution Professional (IRP) provisionally admitted only the principal component while keeping the remaining claim under verification. After further correspondence and Tribunal directions, the RP ultimately rejected the entire claim on 07.01.2026.
