The National Company Law Appellate Tribunal (NCLAT), Principal Bench at New Delhi, has upheld the admission of insolvency proceedings initiated against personal guarantors under Section 95 of the Insolvency and Bankruptcy Code, 2016, thereby dismissing a batch of appeals.
The appeals were filed by Neeta Saha, Aniel Kuumar Saha and Aunirban Saha challenging a common order passed by the National Company Law Tribunal, New Delhi. The order admitted applications filed by a financial creditor for initiation of personal insolvency resolution process. The proceedings arose out of defaults committed by the principal borrower, a corporate debtor which had availed term loan facilities of Rs. 90 crore.
Before the Appellate…