Issuance of Demand Notice to Personal Guarantor u/r 7 of Personal Guarantors Rules not Amounts to Invocation of Guarantee: NCLAT [Read Order]

Accordingly, an application under section 95 of the Insolvency and Bankruptcy Code, 2016 (Code) against the personal guarantor cannot be considered unless a guarantee has been invoked in accordance with the terms of the "Deed of Guarantee"
By Yogitha S. Yogesh - On March 4, 2025 1:35 pm - 2 mins read
Issuance of Demand Notice - Demand Notice - Demand Notice to Personal Guarantor - Personal Guarantor - Personal Guarantors Rules - NCLAT - taxscan

The National Company Law Appellate Tribunal (NCLAT) New Delhi bench has ruled that a Notice served to the personal guarantor under Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 (“2019 Rules”) cannot be regarded as a “Invocation of Guarantee.” Read…

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