Claims Based On Uninvoked Guarantee Cannot Be Admitted By Resolution Professional: NCLAT

The NCLAT has ruled that claims based on uninvoked guarantees cannot be admitted by the resolution professional. This decision clarifies the treatment of guarantees in insolvency proceedings. The ruling ensures that only valid and invoked guarantees are considered during the resolution process. This decision brings clarity to the claims process and protects the interests of stakeholders. The NCLAT's ruling reinforces the importance of adhering to contractual terms related to guarantees.