Creditor not restricted to enforce personal guarantee signed on behalf of trust

Shantanu Jagdish Prakash Vs State Bank of India (NCLAT Delhi)

NCLAT Delhi held that trusteeship deeds are generally signed between the trust on behalf of the lenders and the personal/ corporate guarantor of the principal borrower and Creditors are the true beneficiaries of such deed of guarantee. Thus, creditor cannot be restricted to enforce personal guarantee signed on behalf of trust.

Facts- The present appeal has been filed by the Appellant i.e., Shantanu Jagdish Prakash u/s. 61 of the Insolvency and Bankruptcy Code, 2016 against the Impugned Order 31.05

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