Property Of Personal Guarantors Cannot Be Sold Under SARFAESI Act During Moratorium Period under IBC: NCLT

The NCLT held that properties of personal guarantors can be sold under the SARFAESI Act during the moratorium period of the Insolvency and Bankruptcy Code (IBC). This ruling allowed the enforcement of personal guarantees even during the moratorium period, which is typically designed to protect the assets of corporate debtors undergoing insolvency proceedings. The tribunal found that the SARFAESI Act could still be invoked to recover debts from personal guarantors, even if the corporate debtor is under IBC resolution. The judgment strengthens the ability of creditors to recover debts from personal guarantors, even when the corporate entity is under insolvency proceedings.