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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Once CoC Agrees To Release Personal Guarantees Upon Payment, Invocation Cannot Be Directed By Adjudicating Authority: NCLAT New Delhi
Insolvency & Bankruptcy CodeOther Legal Matters
The NCLAT New Delhi has ruled that once a "CoC agrees to release personal guarantees upon payment," an "invocation cannot be directed by the adjudicating authority." The tribunal's decision provides a significant victory for the company. The ruling clarifies that a company can release a personal guarantee if it is not a part of a debt.
