Acknowledgement Of Debt By Corporate Debtor Extends Limitation Period For Personal Guarantor As Well: NCLT Chandigarh

The NCLT (National Company Law Tribunal), Chandigarh, held that the acknowledgement of debt by a corporate debtor would extend the limitation period for the personal guarantor as well. The tribunal applied the principle that an admission of liability by the principal borrower within the limitation period also binds the guarantor, thereby reviving the claim against the guarantor even if the original limitation period had expired. This ruling has significant implications for recovery proceedings against personal guarantors under the IBC.