Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
NCLAT Delhi: Section 95(1) Of IBC Permits Creditors To Initiate Insolvency Proceedings Against Personal Guarantors Via A Resolution Professional
Insolvency & Bankruptcy Code
The NCLAT Delhi bench, chaired by Justice Ashok Bhushan and Mr. Arun Baroka, affirmed that creditors can initiate insolvency proceedings against a Personal Guarantor through a Resolution Professional (RP) as per Section 95(1) of the Insolvency and Bankruptcy Code, 2016. \r
The appeal arose from a Section 95 application filed by a Financial Creditor against the Appellant, contesting the debt owed under a joint Deed of Guarantee. The NCLAT upheld the application's validity, noting compliance with procedural requirements, including the RP's authorization by the Financial Creditor. \r
It also ruled that the application was within the extended limitation period, considering the acknowledgment of debt and the exclusion period by the Supreme Court.
