NCLT Has Jurisdiction Over Personal Guarantor Insolvency Under Section 95 IBC

NCLAT dismissed an appeal challenging NCLT Delhi's jurisdiction to entertain Section 95 applications against personal guarantors under IBC. The Tribunal held that NCLT is the appropriate adjudicating authority for personal guarantor insolvency proceedings per Section 60(1), regardless of whether proceedings against the corporate debtor are pending. The expression "without prejudice" in Section 60(2) does not limit NCLT's jurisdiction only to cases where CIRP/liquidation of corporate debtor is ongoing. Following Supreme Court's interpretation in Lalit Kumar Jain case, personal guarantors constitute a distinct category of individuals, and their insolvency resolution falls within NCLT's jurisdiction. The appeal lacked merit as NCLT Delhi had rightful jurisdiction to entertain the Section 95 application filed by the financial creditor. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X