NCLT Mumbai: Notice To CD Recalling Loan Facility Doesn't Constitute Demand On Corporate Guarantor

The National Company Law Tribunal (NCLT) Mumbai issued notice to a corporate guarantor for recalling a loan facility demand. The case involves a creditor seeking recovery from the guarantor after the principal debtor failed to repay. The NCLT directed the guarantor to respond to the notice and attend proceedings. This highlights the implications for corporate guarantors under the Insolvency & Bankruptcy Code (IBC) when loan facilities are recalled.