Archive · 1 Jul 2025
NCLT Begins Insolvency Proceedings Against Dilip Chhabria Design Guarantor
Imagine a bank loaned money to a company that makes car designs, and Kiran Kumar Jain promised to pay if the company couldn't.
When the company couldn't pay, the bank went to Jain for the money.
The bank is now trying to recover 42 crore rupees.
Jain said he is solvent with sufficient net worth, but the bank and NCLT disagreed.
NCLT, a special court, reviewed the case and agreed with the bank.
The court has now started a process to see how Jain will pay back the money.
NCLT initiated insolvency proceedings against Kiran Kumar Jain, a guarantor for Dilip Chhabria Design.
Cosmos Co-operative Bank filed the petition to recover ₹42.02 crore in outstanding debt.
Jain claimed he is solvent and contested the validity of a ₹44 crore guarantee.
The Resolution Professional confirmed the debt was unpaid and the guarantee valid.
NCLT found the petition complete and fit for admission, beginning insolvency proceedings.
- Who
- Kiran Kumar Jain (guarantor), Cosmos Co-operative Bank Ltd (creditor), Dilip Chhabria Design Pvt. Ltd. (corporate debtor).
- What
- NCLT initiated personal insolvency proceedings against Kiran Kumar Jain.
- When
- December 15, 2023, proceedings initiated.
- Where
- Mumbai, India.
- Why
- To recover an outstanding debt of ₹42.02 crore.
Kiran Kumar Jain
Cosmos Co-operative Bank Ltd / NCLT
Guarantee Validity
Kiran Kumar Jain
Disputed the validity of ₹44 crore guarantee.
Cosmos Co-operative Bank Ltd / NCLT
NCLT confirmed the validity of the guarantee.
Debt Claim
Kiran Kumar Jain
Claimed the company owes him ₹95.24 crore.
Cosmos Co-operative Bank Ltd / NCLT
Bank sought recovery of ₹42.02 crore.
- Creditor
- Cosmos Co-operative Bank Ltd
- Debtor (Guarantor)
- Kiran Kumar Jain
- Corporate Debtor
- Dilip Chhabria Design Pvt. Ltd.
- Outstanding Debt
- ₹42.02 crore (as of November 30, 2020)
- Date of Guarantee
- July 28, 2014, September 29, 2015, November 26, 2015 and March 2, 2016