OTS with Guarantors Does Not Extinguish Debt of Corporate Debtor: NCLAT Delhi

Puneet Resutra Vs Jammu & Kashmir Bank Ltd (NCLAT Delhi)  In Puneet Resutra v. Jammu & Kashmir Bank Ltd., the National Company Law Appellate Tribunal (NCLAT), Delhi, dismissed the appeal filed by a shareholder of M/s Ace Engineering (India) Pvt. Ltd., thereby upholding the initiation of Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against the company. The key issues before the Tribunal included the legal enforceability of financial debt post a One-Time Settlement (OTS) with guarantors, limitation of the application, ...