Property Of Personal Guarantors Cannot Be Sold Under SARFAESI Act During Moratorium Period U/S 96 Of IBC: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai ruled that the property of personal guarantors cannot be sold during the moratorium period under Section 96 of the Insolvency and Bankruptcy Code (IBC). The case involved a personal guarantor whose property was being sold by creditors despite the moratorium. The tribunal found that the moratorium provisions apply to personal guarantors and protect their assets from being sold during the insolvency resolution process. This decision ensures that personal guarantors are afforded the same protections as corporate debtors under the IBC.