The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Rakesh Kumar Jain (Judicial Member), Mr. Naresh Salecha (Technical Member) and Mr. Indevar Pandey (Technical Member) has held that the liability of the Corporate Debtor is not discharged merely because the guarantors were released from their liabilities by the Bank after One time settlement (OTS) especially when the Bank had preserved its right to proceed against the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016 (IBC).
The present appeal has been filed against an order passed by the National Company Law Tribunal (NCLT) by which an application under section 7 of the IBC was admitted and the Corporate Insolvency Resolution…