The National Company Law Tribunal (NCLT) Mumbai bench of Hon’ble Reeta Kohli (Judicial Member) and Hon’ble Madhu Sinha (Technical Member) has held that an insolvency application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (the Code) against the corporate guarantor of the corporate debtor cannot be admitted unless the delivery of the demand-cum-guarantee invocation notice is properly established. Only when the delivery is proven can the default on the part of the corporate guarantor be said to have arisen.
Brief Facts:
The Corporate Debtor, Grevek Investments And Finance Private Limited is a Company incorporated under the Companies Act, 1956 and is a Corporate Guarantor for Starwort Engineers Pvt Ltd….
