In a recent decision, the National Company Law Appellate Tribunal (NCLAT) bench ruled that the moratorium under Section 14 and the suspension introduced by Section 10A do not bar the Corporate Insolvency Resolution Process(CIRP) against personal guarantors.
The Tribunal stated that merely because the company is going through this process, it does not mean that the personal guarantors are protected. The personal guarantors can still be held responsible for paying back the debts.
Neeta Saha, the petitioner, along with other guarantors, challenged the order passed by the NCLT, New Delhi Bench, on 7 January 2025, in which the Tribunal admitted Section 95 applications filed by Assets Care & Reconstruction Enterprise…