The National Company Law Tribunal has allowed the insolvency cases and found that insolvency of personal guarantors does not provide a legal bar on filing and prosecuting insolvency proceedings for the same underlying obligation.
The Bench is considering a petition filed by ASREC India Limited under the provisions of Insolvency and Bankruptcy Code to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor over the financial default amounting to ₹46.62 crore.
The Corporate Debtor, Landmark Motels and Travels Pvt. Ltd, contested the maintainability of the insolvency proceedings mainly on the ground that the Financial Creditor has initiated proceedings against its personal guarantors….