Plan Invocation cannot be directed after CoC agrees to release personal guarantees upon Payment: NCLAT

The NCLAT has ruled that a "plan invocation cannot be directed" after the Committee of Creditors (CoC) has "agreed to release personal guarantees upon payment." This decision clarifies a crucial aspect of the Insolvency and Bankruptcy Code (IBC) proceedings, particularly concerning the liabilities of personal guarantors. The tribunal held that once a resolution plan is approved and the personal guarantees are released with the CoC's consent, the adjudicating authority cannot subsequently order their invocation. This ruling provides significant relief and legal certainty to corporate debtors and their personal guarantors, reinforcing the sanctity of a resolution plan and the decisions made by the CoC.