Issuance of Demand Notice to Personal Guarantor u/r 7 of Personal Guarantors Rules not Amounts to Invocation of Guarantee: NCLAT

NCLAT ruled that the issuance of a demand notice to a personal guarantor under Rule 7 of the Personal Guarantors Rules does not amount to invocation of the guarantee. This decision clarifies the legal implications of demand notices. It underscores the importance of distinguishing between notice and invocation. This ruling reflects the tribunal's emphasis on legal precision. It emphasizes the need for clear procedures. The ruling aims to prevent misinterpretations.