State Bank filed valid application u/s 95 against personal guarantor: NCLAT Delhi

Mavjibhai Nagarbhai Patel Vs State Bank of India (NCLAT Delhi) Conclusion: Bank was justified in initiating insolvency proceedings against the personal guarantor by timely filing and proper authorization under section 95. Moreso, deed of guarantee was a continuing guarantee, which meant the appellant’s liability was triggered by the bank’s demand, not necessarily by the corporate debtor’s default. Held: Appellant-personal guarantor had signed a deed of guarantee for a corporate debtor’s credit facilities. Following the debtor’s default, the bank issued a Section 13(2) notice demandin...