From perusal of Section 96(1)(b) of IBC, 2016, interim ...

IBC bars fresh proceedings against guarantor's debt, not security interest. Banks can't proceed under SARFAESI once IBC initiated. Guarantor can approach DRT.

Case Laws Indian Laws

July 16, 2024

From perusal of Section 96(1)(b) of IBC, 2016, interim moratorium restrains ongoing or fresh legal action or proceeding regarding debt pertaining to personal guarantor, not security interest created by personal guarantor. No moratorium on bank dealing with security interest. Personal guarantor can approach appropriate forum like DRT to protect assets. Section 96(1)(b) deems legal action or proceeding pending regarding debt stayed upon interim moratorium commencement u/s 96. Bank cannot continue SARFAESI proceedings once IBC proceedings commenced as per Section 238's overriding effect. No sale process commenced regarding mortgaged property. Remedy available under SARFAESI, High Court ought not entertain writ petitions. Bank cannot proceed under SARFAESI due to interim moratorium. Upon moratorium lifting, personal guarantor can approach DRT and raise issues like bank's authority and jurisdiction considering loan sanctioned and disbursed in Dubai.

View Source

← Previous Next →

From perusal of Section 96(1)(b) of IBC, 2016, interim ...

IBC bars fresh proceedings against guarantor's debt, not security interest. Banks can't proceed under SARFAESI once IBC initiated. Guarantor can approach DRT.

Case Laws Indian Laws

July 16, 2024

You may also like:

The NCLAT held that Section 238 of the IBC gives overriding effect to proceedings u/s 7, despite Section 10 of CPC. Proceedings u/s 7 must proceed, as the Code's...

Initiation of CIRP - Assignment of debt during pendency of the proceeding u/s 7 - there is no prohibition in the IBC or any of the Regulations from continuing the...

The Resolution Plan excludes personal guarantors, limiting the assignment of debt and security interests to the corporate debtor only. Consequently, the assignee NBFC...

Provision of IBC are overriding the provisions of SARFAESI or not - Recovery from the Personal Guarantor of a corporate debtor - The securitisation proceedings against...

CIRP - Recovery of dues from the Guarantor, while moratorium was decelerated against the corporate debtor - S. 14 and S.31 of the IBC does not bar initiation and...

Once symbolic possession of the property is taken over by the appellant under the SARFAESI Act, 2002, the moratorium u/s 96 of the Insolvency and Bankruptcy Code...

The sanction letter clearly mentioned that all existing securities, including the guarantees dated 22.08.2015 and 18.11.2016, would continue to cover the existing...

Initiation of CIRP - It is to be remembered that IBC, 2016 is not a ‘Debt Enforcement Procedure’ - the ‘proceedings’ under IBC are summary in nature and not an adversary...

Seeking release of security interest from the liquidation estate - If the respondent wants to proceed with the liquidation proceedings without relinquishing his security...

The application sought amendment of the plaint to implead a new defendant, which was contested on grounds of the bar u/s 14 of the Insolvency and Bankruptcy Code (IBC)...

Disallowance u/s 14A - Exempted income - proportionate disallowance of interest paid by the banks for investments made in tax free bonds/ securities which yield tax free...

Initiation of CIRP - liability of Guarantor of loan - acknowledgment of debt by the Principal Borrower shall be binding on the Guarantor or not - The Tribunal found no...

Admission of Section 95 application filed by the Financial Creditor - Personal Guarantor of the Corporate Debtor - date of default - Assignment of debt - unstamped...

Maintainability of petition seeking initiation of CIRP against Personal Guarantor/Respondent - invocation of Bank guarantee and time limitation - The case involved an...

Withdrawal of the CIRP against the Principal Borrower - bar for the Respondent/Lender in initiating fresh CIRP against the Guarantor or not - , this Tribunal holds that...

Quick Updates: