In a recent ruling, the National Company Law Tribunal (NCLT), Mumbai Bench, dismissed an insolvency petition filed by Think Hard India Private Limited against the personal guarantor of Seya Industries Ltd., holding that failure to invoke the personal guarantee meant no default had occurred under the Insolvency and Bankruptcy Code (IBC).
In January 2020, corporate debtor Seya Industries Ltd. obtained a secured business loan of ₹152 crore from Think Hard India Pvt. Ltd.. To safeguard repayment, Mr. Narendra Rajani executed a personal guarantee in July 2020. When Seya defaulted, the creditor claimed an outstanding debt of ₹412.55 crore as of September 2022.
A statutory demand notice in Form B was…