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Informative

Threshold Limit For Initiating Insolvency Process Against Personal Guarantors Shall be same of Corporate Debtor: NCLT

Update / Judgement Date

02 Apr 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy Code

NCLT ruled that the threshold limit for initiating the insolvency process against personal guarantors shall be the same as that of the corporate debtor. This decision ensures uniformity in insolvency proceedings. The ruling provides clarity on the application of the Insolvency and Bankruptcy Code. NCLT’s ruling standardizes insolvency actions. This decision is important for legal proceedings. This judgement improves legal consistency.