Financial Creditor Can File Plea U/S 7 Of IBC If Actionable Rights Under Guarantee Are Preserved In Approved Resolution Plan: NCLT New Delhi

The NCLT, New Delhi, has ruled that if "actionable rights under a guarantee are preserved in an approved resolution plan," a financial creditor can file a petition under Section 7 of the IBC. The court’s decision provides much-needed clarity on the rights of creditors under the Insolvency and Bankruptcy Code. The ruling reinforces the principle that a financial creditor is not barred from pursuing a claim against a guarantor even if the resolution plan for the corporate debtor has been approved. This judgment is a crucial precedent for banks and other financial institutions.