Coimbatore: Though there is no change in the position that moratorium on sale will apply not only to the assets of the Corporate Debtor but also to the assets of the guarantors, the National Company Law Appellate Tribunal (NCLAT) has made it clear that the moratorium does not restrict the filing of application for initiating insolvency resolution process against guarantors under IBC (Insolvency and Bankruptcy Code).
Incidentally, provisions for starting bankruptcy proceedings against individuals have not yet been notified under IBC.
However, it is made clear that order of Moratorium will be applicable only to the proceedings against the Corporate Debtor and the Personal Guarantor, if pending before any court of law/tribunal or authority b…
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