NCLAT Confirms CIRP Admission Despite OTS with Guarantors, Says Corporate Debtor Still Liable

The NCLAT (National Company Law Appellate Tribunal) has confirmed CIRP (Corporate Insolvency Resolution Process) admission despite an OTS (One-Time Settlement) with guarantors, stating "corporate debtor still liable." This ruling clarifies that a settlement reached only with personal guarantors does not automatically extinguish the liability of the corporate debtor. The NCLAT reiterated that if the corporate debtor itself remains in default and the debt is not fully resolved, insolvency proceedings against the corporate entity can still proceed, upholding the distinct legal identities and liabilities of corporate debtors and their personal guarantors.