The National Company Law Tribunal [NCLT] Chennai bench, has accepted a petition regarding the initiation of a Corporate Insolvency Resolution Process in regard to Hotel Radha Prasad Private Limited holding that a corporate guarantor can be proceeded against for financial debt caused by a partnership firm.
The petition has been filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, in light of the guarantee agreement signed on July 16, 2018, in relation to the facilities provided to Hotel Radha Prasad, a partnership firm. The financial creditor has lent ₹12 crore to the principal borrower for business development purposes. The outstanding debt, which includes interest and other dues, is claimed to be ₹15.30…