NCLAT Upholds Personal Insolvency Despite Pending OTS Proposal

Mohit Dewan Vs Bank of Maharashtra & Anr (NCLAT Delhi) In Mohit Dewan Vs. Bank of Maharashtra & Anr, the NCLAT Delhi addressed an appeal challenging the initiation of Corporate Insolvency Resolution Process (CIRP) against the appellant, a personal guarantor, under Section 95 of the Insolvency and Bankruptcy Code. The appellant contended that a One Time Settlement (OTS) proposal had been submitted by the principal borrower, which was approved by the bank for a total payment of ₹7 crores, of which ₹1.75 crores had already been paid. The OTS, however, was pending approval from the Deb...