Serving Demand Notice To Personal Guarantor Under Rule 7 Of Personal Guarantors Rules Cannot Be Considered Invocation Of Guarantee: NCLAT
3 weeks, 1 day ago

Serving Demand Notice To Personal Guarantor Under Rule 7 Of Personal Guarantors Rules Cannot Be Considered Invocation Of Guarantee: NCLAT

Live Law  

The National Company Law Appellate Tribunal New Delhi bench of Justice Ashok Bhushan, Mr. Barun Mitra and Mr. Arun Baroka has held that a Notice served to the personal guarantor under Rule 7 of Insolvency and Bankruptcy Rules, 2019 cannot be considered 'Invocation of Guarantee', therefore unless a guarantee has been invoked as per the terms of the 'Deed of Guarantee', an application under section 95 of the Insolvency and Bankruptcy Code, 2016 against the personal guarantor cannot be entertained. The SBI issued a Demand Notice under Rule 7 of the 2019 Rules upon the Guarantor - Deepak Kumar Singhania, calling upon the Respondent to make payment An application under Section 95 of the code was filed by the Appellant on 28.05.2022. Notice under Rule 7 is statutory Notice, prior to initiate proceedings under Section 95, which is a statutory pre-requisite for any Creditor intending to initiate Corporate Insolvency Resolution Process against the Personal Guarantor. Issue before NCLAT Whether the Demand Notice issued under Rule 7 of the 2019 Rules can be considered as Notice for invocation of guarantee for the purposes of filing Section 95 Application by a Creditor?

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History of this topic

Supreme Court Disapproves Of High Court Interdicting Insolvency Process Against Personal Guarantor At Threshold Stage In Writ Jurisdiction
1 month ago

Supreme Court Disapproves Of High Court Interdicting Insolvency Process Against Personal Guarantor At Threshold Stage In Writ Jurisdiction

Live Law  

The Supreme Court while deciding an appeal pertaining to insolvency proceedings initiated against a personal guarantor, observed that the High Court should not have prohibited such proceedings by holding that the guarantor's liability has been waived. "In light of this statutory scheme, which has been followed by the Adjudicating Authority, we are of the view that the High Court incorrectly …

Creditors Are Not Barred From Enforcing Personal Guarantee Signed On Their Behalf By Trust: NCLAT
1 month, 3 weeks ago

Creditors Are Not Barred From Enforcing Personal Guarantee Signed On Their Behalf By Trust: NCLAT

Live Law  

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain and Mr. Naresh Salecha has held that creditors are not barred from enforcing a personal guarantee even if they were not party to the trusteeship deed signed on their behalf between a trust and the personal guarantors. Contentions: The appellant submitted that since the Personal Guarantee issued by the Appellant …

Insolvency Application Against Personal Guarantor Is Maintainable U/S 60(1) Of IBC Even If No CIRP Process Is Pending Against CD: NCLAT
2 months ago

Insolvency Application Against Personal Guarantor Is Maintainable U/S 60(1) Of IBC Even If No CIRP Process Is Pending Against CD: NCLAT

Live Law  

The NCLAT New Delhi bench of Justice Ashok Bhushan and Mr. Arun Baroka has held that an application under section 95 of the Insolvency and Bankruptcy Code against the personal guarantor is maintainable before the NCLT under section 60 of the code even if no CIRP or Liquidation process is initiated or pending against the corporate debtor before the NCLT. …

Unilateral Revocation Of Guarantee Does Not Discharge Guarantor From His Obligations When Such Revocation Was Not Accepted By Creditor: NCLAT
2 months, 2 weeks ago

Unilateral Revocation Of Guarantee Does Not Discharge Guarantor From His Obligations When Such Revocation Was Not Accepted By Creditor: NCLAT

Live Law  

The NCLAT New Delhi bench of Justice Rakesh Kumar Jain, Mr. Naresh Salecha and Mr. Indevar Pandey has held that unilateral revocation of guarantee by the Respondent No.1 does not absolve him from his obligations under the guarantee agreement when the Financial Creditor has not agreed to such revocation. It was also argued that approval of Resolution Plan does not …

Date Of Default In Case Of Personal Guarantor Depends On Terms Of Contract Of Guarantee: NCLAT
3 months ago

Date Of Default In Case Of Personal Guarantor Depends On Terms Of Contract Of Guarantee: NCLAT

Live Law  

The NCLAT New Delhi bench of Justice Ashok Bhushan, Mr. Arun Baroka and Barun Mitra has held that the liability of a borrower and guarantor is co-extensive but the liability of a Guarantor stems from the contract of guarantee and therefore the date of default in the case of the guarantor depends on the terms of contract of guarantee. Since …

Limitation Period For Both Corporate Debtor And Personal Guarantor Will Commence From Same Date: NCLT Hyderabad
3 months, 2 weeks ago

Limitation Period For Both Corporate Debtor And Personal Guarantor Will Commence From Same Date: NCLT Hyderabad

Live Law  

The NCLT Hyderabad bench of Sri Rajeev Bhardwaj and Sri Sanjay Puri has held that the Personal Guarantor should be treated on an equal legal footing with the Corporate Debtor, as it is clearly established by the law that the liability of Corporate Debtor and Personal Guarantor are co-extensive in nature. The petitioner submitted that the Guarantee Agreement is a …

Guarantor Cannot Become Financial Creditor Without Making Any Payment In Discharge Of Guarantee: NCLAT
3 months, 3 weeks ago

Guarantor Cannot Become Financial Creditor Without Making Any Payment In Discharge Of Guarantee: NCLAT

Live Law  

The NCLAT New Delhi bench of Mr. Justice Ashok Bhushan, Mr. Barun Mitra and Mr. Arun Baroka has held that guarantor cannot become a financial creditor without paying any amount towards discharging the liability of the principal borrower for whom the guarantee was given. The IRP sent a report in which two more unsecured financial creditors, the appellants herein, were …

Threshold Limit For Initiating Insolvency Process Against Personal Guarantors Is Also ₹1 Crore: NCLT New Delhi
3 months, 3 weeks ago

Threshold Limit For Initiating Insolvency Process Against Personal Guarantors Is Also ₹1 Crore: NCLT New Delhi

Live Law  

The NCLT New Delhi bench of Shri Subrata Kumar Dash and Shri Ashok Kumar Bhardwaj had held that the threshold limit for initiating insolvency process against the personal guarantors under section 95 of the Code would be the same as is with respect to the corporate debtor under section 4 of the IBC i.e. The tribunal further noted that it …

NCLT Allows Personal Guarantor to Classify Account as NPA During Moratorium Period
4 months, 3 weeks ago

NCLT Allows Personal Guarantor to Classify Account as NPA During Moratorium Period

Live Law  

The NCLT has admitted a Section 95 application filed by the applicant bank to initiate CIRP against the Personal Guarantor of M/s CMYK Printech Limited. The tribunal found that the liability of the Personal Guarantor is co-existing with that of the Principal Borrower and that it falls under the ambit of Section 128 of the Indian Contract Act, 1872. The …

Corporate Guarantor Can't Be Absolved From Its Liability Only Due To Non-Invocation Of Guarantee: NCLAT Delhi
8 months, 1 week ago

Corporate Guarantor Can't Be Absolved From Its Liability Only Due To Non-Invocation Of Guarantee: NCLAT Delhi

Live Law  

The National Company Law Appellate Tribunal Delhi bench, comprising Mr. Justice Ashok Bhushan and Mr. Barun Mitra held that a Corporate Guarantor cannot be absolved from its liability only due to non-invocation of guarantee. Central Bank of India filed an objection providing details of the working capital term loan secured by the Corporate Guarantor. The Corporate Guarantor filed the appeal …

NCLT Kochi: Creditors Can't Initiate Insolvency Proceedings Against Personal Guarantor Without Establishing Independent Default By CD
8 months, 3 weeks ago

NCLT Kochi: Creditors Can't Initiate Insolvency Proceedings Against Personal Guarantor Without Establishing Independent Default By CD

Live Law  

The National Company Law Tribunal Kochi, comprising Justice T Krishna Valli and Mr. Shyam Babu Gautam dismissed the application to initiate insolvency proceedings against the Personal guarantors under Section 95 of Insolvency and Bankruptcy Code, 2016. It held that creditors cannot initiate insolvency proceedings against personal guarantors solely based on the initiation of the Corporate Insolvency Resolution Process without showcasing …

NCLAT Delhi: Section 95(1) Of IBC Permits Creditors To Initiate Insolvency Proceedings Against Personal Guarantors Via A Resolution Professional
9 months ago

NCLAT Delhi: Section 95(1) Of IBC Permits Creditors To Initiate Insolvency Proceedings Against Personal Guarantors Via A Resolution Professional

Live Law  

The National Company Law Appellate Tribunal Delhi bench, comprising Mr. Justice Ashok Bhushan and Mr. Arun Baroka held that Section 95 of Insolvency and Bankruptcy, Code, 2016 allows creditors to initiate insolvency process against a Personal Guarantor through a Resolution Professional. Contention of the Appellant: The Appellant argued that since the default occurred on 04.03.2016, the Section 95 application filed …

NCLT Kolkata: Simultaneous CIRP Can Be Initiated Against Principal Borrower And Corporate Guarantor
1 year, 1 month ago

NCLT Kolkata: Simultaneous CIRP Can Be Initiated Against Principal Borrower And Corporate Guarantor

Live Law  

The National Company Law Tribunal Kolkata comprising Smt. NCLT Verdict: The NCLT Kolkata admitted the CIRP application and held that a simultaneous CIRP can be initiated against Principal Borrower and Corporate Guarantor under IBC. In cases where the corporate person had offered guarantee in respect of loan transaction, the right of the financial creditor to initiate action against such entity …

Supreme Court Upholds Constitutionality Of IBC Provisions Relating To Personal Guarantors; Says Adjudicatory Role Can't Be Read Into Sec 97
1 year, 4 months ago

Supreme Court Upholds Constitutionality Of IBC Provisions Relating To Personal Guarantors; Says Adjudicatory Role Can't Be Read Into Sec 97

Live Law  

In a significant judgment, the Supreme Court on Thursday upheld the constitutionality of the provisions of the Insolvency and Bankruptcy Code relating to Personal Guarantors' Insolvency Resolution, which were introduced through the amendments made in 2019.The Court held that these provisions cannot be held as unconstitutional for not affording. In a significant judgment, the Supreme Court on Thursday upheld the …

IBC | Sending Demand Notice Under Rule 7(1) To Personal Guarantor Cannot Be Termed As Arbitrary: Delhi High Court
1 year, 7 months ago

IBC | Sending Demand Notice Under Rule 7(1) To Personal Guarantor Cannot Be Termed As Arbitrary: Delhi High Court

Live Law  

The Delhi High Court Bench comprising of Justice Purushaindra Kumar Kaurav, while adjudicating a petition filed in Vineet Saraf v Rural Electrification Corporation Ltd., has declined to quash a Demand Notice sent to a personal guarantor under Rule 7 of the Insolvency and Bankruptcy Rules, 2019. The respondent in turn would be denied the opportunity to present their case before …

A Petition Against A Corporate Guarantor Cannot Be Dismissed Simply Because A Resolution Plan For The Corporate Debtor Is Under Consideration: NCLT Mumbai
1 year, 10 months ago

A Petition Against A Corporate Guarantor Cannot Be Dismissed Simply Because A Resolution Plan For The Corporate Debtor Is Under Consideration: NCLT Mumbai

Live Law  

The National Company Law Tribunal, Mumbai Bench, comprising Shri Kuldip Kumar Kareer and Smt. Edelweiss Asset Reconstruction Company Limited vs Sadguru Multitrade Private Limited has held that insolvency proceedings can be initiated against both the Corporate Debtor and Corporate Guarantor simultaneously and a petition against a Corporate Guarantor cannot be dismissed simple on the ground that a Resolution Plan is …

Approval Of Resolution Does Not Absolve Guarantor; NCLT Mumbai Reiterates
1 year, 10 months ago

Approval Of Resolution Does Not Absolve Guarantor; NCLT Mumbai Reiterates

Live Law  

The National Company Law Tribunal, Mumbai Bench, comprising Shri Kuldip Kumar Kareer and Smt. Anuradha Sanjay Bhatia, while adjudicating an application under Section 7 of Insolvency and Bankruptcy Code, 2016 in Anchor Leasing Private Limited vs Sejal Realty and Infrastructure Limited has reiterated that the liability of the guarantor does not ipso facto come to an end merely with the …

Sec. 126 Of ICA, 1872 Can’t Be Interpreted To Mean That Co-Borrower And Guarantor Can’t Be The Same Person: NCLT Mumbai
1 year, 10 months ago

Sec. 126 Of ICA, 1872 Can’t Be Interpreted To Mean That Co-Borrower And Guarantor Can’t Be The Same Person: NCLT Mumbai

Live Law  

The National Company Law Tribunal, Mumbai Bench, comprising Shri Kuldip Kumar Kareer and Smt. Whiz Enterprise Private Limited has held that Section 126 of the Indian Contract Act, 1872 cannot be interpreted to mean that co-borrower and the guarantor cannot be one and the same person Background Facts M/s Laxmi Business Center availed credit facilities sanctioned by Shamrao Vithal Co-operative …

No Ipso Facto Absolvement Of Guarantor’s Liability Upon Approval Of Resolution Plan: Allahabad High Court
2 years, 2 months ago

No Ipso Facto Absolvement Of Guarantor’s Liability Upon Approval Of Resolution Plan: Allahabad High Court

Live Law  

The High Court of Allahabad Bench comprising of Justice Sunita Agarwal and Justice Vipin Chandra Dixit, while adjudicating a petition filed in Narendra Singh Panwar v Pashchimanchal Vidyut Vitran Nigam Limited & Ors., has held that approval of a resolution plan under Section 31 of the IBC, does not ipso facto absolve the surety/guarantor of the Corporate Debtor of his …

Section 10A Is Not Applicable To Proceedings Against Personal Guarantors Under Insolvency & Bankruptcy Code, 2016: NCLAT New Delhi
2 years, 6 months ago

Section 10A Is Not Applicable To Proceedings Against Personal Guarantors Under Insolvency & Bankruptcy Code, 2016: NCLAT New Delhi

Live Law  

The National Company Law Appellate Tribunal, New Delhi bench comprising of Justice Ashok Bhushan and Justice M Satyanarayan Murthy, Mr. Barun Mitra recently held that Section 10A of the Insolvency & Bankruptcy Code, 2016 is not applicable to proceedings against the personal guarantors under Section 95 of the Code. Contentions of Personal Guarantor It was contended on behalf of the …

Liability Of Personal Guarantor Survives Even On Becoming Citizen Of A Foreign Country: NCLAT Delhi
2 years, 7 months ago

Liability Of Personal Guarantor Survives Even On Becoming Citizen Of A Foreign Country: NCLAT Delhi

Live Law  

The National Company Law Appellate Tribunal, New Delhi Bench, comprising of Justice Ashok Bhushan, Justice M. Satyanarayana Murthy and Shri Barun Mitra, while adjudicating an appeal in Sudip Dutta v State Bank of India, has held that the liability of a Personal Guarantor does not get extinguished upon subsequent acquisition of citizenship of a foreign country. The Central Government may, …

Guarantor Cannot Enjoy 'Right Of Subrogation' Even After CIRP Against Principal Debtor Gets Concluded: NCLT Hyderabad
2 years, 8 months ago

Guarantor Cannot Enjoy 'Right Of Subrogation' Even After CIRP Against Principal Debtor Gets Concluded: NCLT Hyderabad

Live Law  

The National Company Law Tribunal, Hyderabad Bench, comprising of Dr. N. Venkata Ramakrishna Badarinath Shri Veera Brahma Rao Arekapudi, while adjudicating a petition filed in State Bank of India v Shri. Ghanshyam Surajbali Kurmi, has held that a guarantor cannot enjoy a right of subrogation even after the Corporate Insolvency Resolution Process of the Principal Debtor gets concluded. The Financial …

Under 'Right Of Subrogation' Guarantor Is Entitled To Initiate CIRP Against Principal Borrower: NCLT Kolkata
2 years, 8 months ago

Under 'Right Of Subrogation' Guarantor Is Entitled To Initiate CIRP Against Principal Borrower: NCLT Kolkata

Live Law  

The National Company Law Tribunal, Kolkata Bench, comprising of Shri Rohit Kapoor and Shri Harish Chander Suri, while adjudicating a petition filed in Orbit Towers Pvt. However, the Corporate Debtor failed to do so and the Financial Creditor paid Rs.8,45,19,907/- to the Indian Bank in capacity of a Corporate Guarantor. The Financial Creditor filed a petition under Section 7 of …

NCLT Kolkata Initiates Insolvency Process Against The Personal Guarantor Of Gontermann-Pipers (India) Ltd.
2 years, 8 months ago

NCLT Kolkata Initiates Insolvency Process Against The Personal Guarantor Of Gontermann-Pipers (India) Ltd.

Live Law  

The National Company Law Tribunal, Kolkata Bench, comprising of Shri Rohit Kapoor and Shri Harish Chander Suri, while adjudicating a petition filed in UCO Bank v Vinod Kumar Mittal, has initiated Insolvency Resolution Process against Mr. Vinod Kumar Mittal, who is the Personal Guarantor to the loan sanctioned to Gontermann-Pipers Limited by UCO Bank. Mr. Vinod Kumar Mittal is one …

Proceedings U/S 95 Of The IBC Shall Abate On Death Of The Personal Guarantor: NCLT, New Delhi
3 years ago

Proceedings U/S 95 Of The IBC Shall Abate On Death Of The Personal Guarantor: NCLT, New Delhi

Live Law  

NCLT, New Delhi bench consisting of Justice Ramalingam Sudhakar and Sh. Hemant Kumar Sarangi in the case of Alchemist Asset Reconstruction Company v. Mr. Deepak Puri rejected an application filed by the Financial Creditor u/s 95 of the IBC, 2016 against the Personal Guarantor of the Corporate Debtor on the ground that after death of the Personal Guarantor, the proceedings …

Personal Property of Guarantors Cannot Be Transferred During CIRP of Corporate Debtor: NCLAT
3 years, 6 months ago

Personal Property of Guarantors Cannot Be Transferred During CIRP of Corporate Debtor: NCLAT

Live Law  

The National Company Law Appellate Tribunal has held that the personal property of the Guarantors could not be transferred in the Corporate Insolvency Resolution Process of the Corporate Debtor, even though, their properties were mortgaged with the Financial Creditors.Officiating Chairperson AIS Cheema and Technical Member Alok Srivastava held under Section 61 of IBC that the Resolution. The National Company Law …

Lenders To Initiate Insolvency Proceedings Against Personal Guarantors
3 years, 9 months ago

Lenders To Initiate Insolvency Proceedings Against Personal Guarantors

Live Law  

With the recovery proceedings under the Insolvency and Bankruptcy Code, 2016 not moving at the pace that it should, the Government, on November 15, 2019 came out with a new provision that empowered banks to move an application for initiation of insolvency against personal guarantors, who are usually promoters of big business houses. Petitions before various High Courts were filed …

An Analysis Of The Supreme Court Verdict On Insolvency And Bankruptcy Of Personal Guarantors Of A Corporate Debtor
3 years, 9 months ago

An Analysis Of The Supreme Court Verdict On Insolvency And Bankruptcy Of Personal Guarantors Of A Corporate Debtor

Live Law  

The Ministry of Corporate Affairs, in the bask of implementing the Insolvency and Bankruptcy Laws in India notified and brought into force the provisions of insolvency of personal guarantors of the corporate debtorvide notification dated 15th November, 2019. After enactment of the Code, insolvency proceedings against personal guarantors to corporate debtors would lie before the NCLT, in terms of Section …

Guarantor beware: The Hindu Editorial on loans to corporate borrowers
3 years, 10 months ago

Guarantor beware: The Hindu Editorial on loans to corporate borrowers

The Hindu  

The Supreme Court judgment upholding creditors’ right to proceed against personal guarantors to loans provided by them to a corporate borrower helps lift the uncertainty over the extent to which banks and other financial lenders can pursue not only the corporate debtor but also the individuals who had furnished personal guarantees to enable the flow of credit to the company …

IBC - Approval Of Resolution Plan Does Not By Itself Discharge Liabilities Of Personal Guarantor Of Corporate Debtor: Supreme Court
3 years, 10 months ago

IBC - Approval Of Resolution Plan Does Not By Itself Discharge Liabilities Of Personal Guarantor Of Corporate Debtor: Supreme Court

Live Law  

The Supreme Court has held that the approval of a resolution plan does not ipso facto discharge a personal guarantor of a corporate debtor.The release or discharge of a principal borrower from the debt owed by it to its creditor, by an involuntary process, i.e. The Supreme Court has held that the approval of a resolution plan does not ipso …

Guarantors liable if firms fail to repay: Supreme Court
3 years, 10 months ago

Guarantors liable if firms fail to repay: Supreme Court

Hindustan Times  

Promoters, managing directors and chairmen, who stand as personal guarantors to corporate loans, can also be proceeded against before the company law tribunal if their firms are unable to repay debts, ruled the Supreme Court on Friday as it declared “legal and valid” a November 15, 2019, notification issued by the Union government under the Insolvency and Bankruptcy Code. Citing …

Supreme Court Upholds IBC Provisions Applicable To Personal Guarantors Of Corporate Debtors-Read Judgment
3 years, 10 months ago

Supreme Court Upholds IBC Provisions Applicable To Personal Guarantors Of Corporate Debtors-Read Judgment

Live Law  

The Supreme Court today upheld the provisions of Insolvency and Bankruptcy Code, 2016 which applies to personal guarantors of corporate debtors.The bench comprising Justices L. Nageswara Rao and S. Ravindra Bhat approval of a resolution plan relating to a corporate debtor does not operate so as to discharge the liabilities of personal guarantors. The Supreme Court today upheld the provisions …

Supreme Court says personal guarantors liable for corporate debt
3 years, 10 months ago

Supreme Court says personal guarantors liable for corporate debt

The Hindu  

The Supreme Court on Friday upheld a government move to allow lenders initiate insolvency proceedings against personal guarantors, who are usually promoters of big business houses, along with the stressed corporate entities for whom they gave guarantee. In a judgment, which will ring loud and clear across the business community, a Bench of Justices L. Nageswara Rao and S. Ravindra …

Bad Loans: Govt Asks PSBs to Look at Initiating Insolvency Proceedings Against Personal Guarantors
4 years, 6 months ago

Bad Loans: Govt Asks PSBs to Look at Initiating Insolvency Proceedings Against Personal Guarantors

News 18  

The finance ministry has asked public sector banks to monitor cases where insolvency proceedings could be initiated against individuals who are guarantors of corporate debtors that have defaulted on loans. The Code also provides for initiation of insolvency proceedings against personal guarantors of corporate debtors, even though the provision has not been used much by lenders to recover dues. In …

Delhi HC Issues Notice On Challenge To Centre's Notification Of IBC Part III Only As Regards Personal Guarantors To Corporate Debtors [Read Petition]
4 years, 7 months ago

Delhi HC Issues Notice On Challenge To Centre's Notification Of IBC Part III Only As Regards Personal Guarantors To Corporate Debtors [Read Petition]

Live Law  

The Delhi High Court on Tuesday issued notice on a plea challenging the November 15, 2019 gazette notification bringing into effect certain provisions of Part III of the IBC, i.e., Insolvency Resolution and Bankruptcy For Individuals and Partnership Firms from December 1, 2019. The plea argues that the Impugned Notification and the Impugned Rules and Regulations are manifestly arbitrary and …

A Personal Guarantor's Pandemic: IBC Suspension And Its Repercussions
4 years, 9 months ago

A Personal Guarantor's Pandemic: IBC Suspension And Its Repercussions

Live Law  

On 25 March 2020, in light of the COVID-19 pandemic currently plaguing the world, the Central Government, through the Ministry of Home Affairs, had to take the harsh step of imposing a nationwide lockdown, which has been supplemented by periodic extensions. By way of a notification dated 15 November 2019, the Central Government brought into effect Part III of the …

Centre Notifies Rules For Corporate Insolvency Resolution Process Of Guarantors To Corporate Debtors
5 years, 4 months ago

Centre Notifies Rules For Corporate Insolvency Resolution Process Of Guarantors To Corporate Debtors

Live Law  

The Centre, through the Ministry of Corporate Affairs has notified rules for corporate insolvency resolution process in respect of guarantors of corporate debtors, called the Insolvency and Bankruptcy Rules, 2019. It is based on these provisions that the new rules for insolvency resolution for have been framed, only in so far as they relate to personal guarantors to corporate debtors. …

Insolvency And Bankruptcy Code: Section 14 Moratorium Would Not Apply To A Personal Guarantor Of A Corporate Debtor: SC [Read Judgment]
6 years, 7 months ago

Insolvency And Bankruptcy Code: Section 14 Moratorium Would Not Apply To A Personal Guarantor Of A Corporate Debtor: SC [Read Judgment]

Live Law  

'Section 14 refers only to debts due by corporate debtors, who are limited liability companies, and it is clear that in the vast majority of cases, personal guarantees are given by Directors who are in management of the companies. The Supreme Court has held that Section 14 of the Insolvency and Bankruptcy Code, 2016, which provides for a moratorium for …

Corporate Insolvency Resolution Process Under Insolvency And Bankruptcy Code And The Dilemma Surrounding Guarantee
7 years, 2 months ago

Corporate Insolvency Resolution Process Under Insolvency And Bankruptcy Code And The Dilemma Surrounding Guarantee

Live Law  

India is on the cusp of a major shift in its recovery, insolvency, and bankruptcy jurisprudence post introduction of Insolvency and Bankruptcy Code 2016. In Sanjeev Shriya, the Hon'ble Allahabad High Court observed that, wherein a corporate debtor is undergoing corporate insolvency resolution process under the Code, parallel proceedings against the personal guarantors of such corporate debtor should not be …

Insolvency Proceedings Against Personal Guarantors Under The Insolvency And Bankruptcy Code - Missed Opportunity By The Allahabad HC?
7 years, 6 months ago

Insolvency Proceedings Against Personal Guarantors Under The Insolvency And Bankruptcy Code - Missed Opportunity By The Allahabad HC?

Live Law  

Insolvency and Bankruptcy Code, 2016 is a crucial legislation passed by the Parliament which has the potential to be a game changer in the insolvency and bankruptcy regime in India. In this regard, Sanjeev Shriya v. State Bank of India & others before the Allahabad High Court was a fit case to settle the issue regarding initiation of insolvency process …

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