Insolvency Application Against Personal Guarantor Is Maintainable U/S 60(1) Of IBC Even If No CIRP Process Is Pending Against CD: NCLAT

The NCLAT ruled that an insolvency application against a personal guarantor can be maintained before the National Company Law Tribunal (NCLT) under Section 60(1) of the Insolvency and Bankruptcy Code, even if no Corporate Insolvency Resolution Process (CIRP) or liquidation is pending against the corporate debtor. The ruling clarifies that personal guarantors can be subject to insolvency proceedings independently of the corporate debtor’s status. This decision underscores the increasing accountability of personal guarantors in corporate insolvency matters, reinforcing the broad scope of the IBC in addressing financial accountability.