NCLAT Dismisses Personal Guarantors’ Appeals Against Bank of Baroda; Upholds Lower Court’s Direction for Document Inspection

The National Company Law Appellate Tribunal (NCLAT) dismissed the appeals filed by personal guarantors who challenged a lower court's direction to allow inspection of documents related to a loan account with Bank of Baroda. The personal guarantors argued procedural impropriety in invoking guarantees and initiating insolvency proceedings under Section 95 of the IBC. NCLAT ruled that the right to inspect documents was in line with principles of natural justice and that such inspection cannot be denied in personal insolvency proceedings. The Tribunal also clarified that changes in debt amount post-resolution plan approval do not bar Section 95 proceedings against guarantors. This judgment reinforces creditor rights and procedural transparency while holding personal guarantors accountable in corporate debt defaults.