The excerpts from the famous poem by Robert Frost, The Road Not Taken,—“Two roads diverged in a yellow wood, And sorry I could not travel both…”—aptly illustrate the challenge of choosing the right forum or the ‘Adjudicating Authority’ for insolvency resolution process of personal guarantors under the Insolvency and Bankruptcy Code, 2016 (IBC/ the Code). While one way leads to the National Company Law Tribunal (NCLT); the other leads to the Debt Recovery Tribunal (DRT). Both roads are sometimes traversed in parallel proceedings before the two forums.
Why does this issue arise? It does so because the liability of the personal guarantor is co-extensive with that of the corporate debtor whose insolvency proceedings are pursued…
