Action u/s. 121 of I&B Code by creditor justified on failure to make payment as per repayment plan

Tummala Sri Ganesh Vs State Bank of India (NCLAT Chennai)

NCLAT Chennai held that failure to make payment as per repayment plan grants liberty to the creditor to initiate action under section 121 of the Insolvency and Bankruptcy Code. Thus, action of creditors cannot be faulted.

Facts- The appellants happen to be the personal guarantors as per the Guarantee Agreement and consequential Supplemental Guarantee Deed that were executed by them in favour of the Respondent No. 1(the bank in question) in order to honour the obligations of the principal borrower i.e.

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