2024 (4) TMI 1015 - SCH - Insolvency and Bankruptcy

Approval of Resolution Plan - appellant submitted that the personal guarantees given by the individual guarantors, could not have been made the subject matter of the resolution plan with regard to the Corporate Insolvency Resolution Process of the corporate debtor - HELD THAT - Issue notice, returnable in the week commencing 20.08.2024. Notice will be served by all modes, including dasti.

Summary

The Supreme Court in the case of Punjab National Bank ruled that personal guarantees of individual guarantors cannot be part of the resolution plan for the Corporate Insolvency Resolution Process of the corporate debtor. The Court allowed the resolution plan to be executed while clarifying that personal guarantees by third parties should not be cancelled.