The Peak Indebtedness Rule – Chamberlains

What is the Peak Indebtedness Rule? The purpose of the peak indebtedness rule is to increase the chance of substantiating an unfair preference claim. It allows liquidators who are experiencing a running account to decide on the best peak of the Company’s indebtedness to the creditor and use it as the beginning for each singular…

Application U/S 95 Of IBC Against Personal Guarantors Not Barred By Change In Debt Quantum After Approval Of Plan Against Corporate Debtor: NCLAT

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Mr. Arun Baroka (Technical Member) has held that a change in the quantum of debt to be paid by the personal guarantor, following the approval of the resolution plan in the Corporate Insolvency Resolution Process (CIRP) of the…