Execution Of Fresh Personal Guarantee Post-Restructuring Bars Initiation Of Insolvency Process U/S 95 Of IBC Against Personal Guarantor: NCLAT

Execution of Fresh Personal Guarantee Post-Restructuring Bars Initiation of Insolvency Process U/S 95 of IBC Against Personal Guarantor: NCLAT The National Company Law Appellate Tribunal (NCLAT) has ruled that if a fresh personal guarantee is executed by an individual after the restructuring of a corporate debt, it acts as a bar to initiating an insolvency process under Section 95 of the Insolvency and Bankruptcy Code (IBC) against that personal guarantor. This decision provides clarity on the legal implications of fresh guarantees in post-restructuring scenarios, potentially offering a shield to guarantors from immediate insolvency proceedings if a new agreement is in place.