Bank Cannot Proceed Under SARFAESI Act Against Personal Guarantor During Interim Moratorium Under IBC, 2016: NCLAT Principal Bench

The NCLAT Principal Bench ruled that banks cannot proceed under the SARFAESI Act against a personal guarantor during an interim moratorium under the Insolvency and Bankruptcy Code (IBC) 2016. The tribunal emphasized that the IBC’s provisions take precedence during the moratorium period, protecting personal guarantors from parallel enforcement actions by creditors. This decision highlights the interplay between the SARFAESI Act and the IBC, with the latter having overriding effect during insolvency proceedings.