Benefit of interim moratorium u/s. 96 not granted if application is filed to avoid insolvency process

Punjab National Bank Vs Mohita Indrayan (NCLT Chandigarh)

NCLT Chandigarh held that if an application is filed u/s. 94 by the Personal Guarantor himself and it appears that section 94 Application is mere a shield to avoid or dodge the insolvency process, the Personal Guarantor cannot be granted the benefit of an interim moratorium u/s. 96 of the Code.

Facts- The Applicant is a Personal Guarantor to M/s Indian Clothing League Private Limited (the Corporate Debtor) for the cash credit facilities to the tune of Rs. 20 crore and Rs. 15 crore from the Punjab Nati

Please become a Premium member. If you are already a Premium member, login here to access the full content.