The petition was filed by the Union Bank of India before the NCLT, Mumbai Bench-Court III, seeking initiation of bankruptcy proceedings under section 123 of the IBC, 2016. The respondent, Mr. Kapil Wadhawan, acted as the personal guarantor of the DHFL, a corporate debtor that had undergone the corporate insolvency.
The petitioner extended various credit facilities to the corporate debtor. The respondent and the other guarantor executed a Joint Deed of Guarantee in favor of the petitioner, wherein they personally guaranteed to the bank the due payment, not exceeding Rs. 50,656.86 Cr.
Later on, the CIRP of the corporate debtor was initiated in furtherance to a section 7 IBC petition filed by the RBI. Pursuant to the…