The National Company Law Tribunal (NCLT), Mumbai Bench, has held that a personal guarantor’s insolvency proceedings cannot be used to block recovery of property owned by the company that borrowed the money.
“The moratorium in respect of the Personal Guarantor, resulting from the Company Petition filed by the Personal Guarantor under Section 94, does not extend to the Subject Property,” observed a bench of Judicial Member K. R. Saji Kumar and Technical Member Anil Raj Chellan.
Aztek Processors Pvt. Ltd. (Corporate Debtor) availed the loan facilities from the ICICI Bank. An industrial plot situated at Dombivali Industrial Estate, Maharashtra, owned by the corporate debtor was mortgaged to secure the financial facilities, and…