The present case arises from parallel proceedings on the same debt. On May 8, 2019, the National Company Law Tribunal passed two orders: it rejected the insolvency plea against Sima Hotels as time-barred, but admitted the same claim against Dugal Projects, which had guaranteed the loan.
This divergence led to appeals before the National Company Law Appellate Tribunal (NCLAT), which dismissed the creditor’s case against the principal borrower as time-barred, holding that the default dated back decades and the insolvency application filed in 2018 was beyond limitation. This finding was later upheld by the Supreme Court. Crucially, Justice Viswanathan appeared in this case for AARC.
In the separate appeal concerning the guarantor, the…