Enforceability Of Personal Guarantees In Insolvency Proceedings: An Analysis Of SBI Vs Gourishankar Poddar
- IJLLR Journal
- 5 hours ago
- 1 min read
Suyash Singh Gaharwar, BBA LLB, University of Mumbai Law Academy, Mumbai
ABSTRACT
The National Company Law Appellate Tribunal (NCLAT) in this case addressed three key issues concerning the initiation of the Corporate Insolvency Resolution Process (CIRP) and the liability of the personal guarantor. First, the Tribunal reaffirmed that the guarantee provided by the personal guarantor was a continuing guarantee, binding until the debt was fully repaid, relying on Section 129 of the Indian Contract Act, 1872 and Second, on the issue of limitation, the Tribunal found the CIRP petition was timely filed, noting that the revival letter and balance confirmation letter reset the limitation period under Section 18 of the Limitation Act, 1963
Keywords: Insolvency and Bankruptcy Code, Indian Contract Act, Indian Limitation Act, Resolution Professional, Financial Creditor, Corporate Debtor.
