No Insolvency Against Personal Guarantor Without Guarantee Invocation: NCLT Mumbai

Think Hard India Private Limited Vs Narendra Rajani (NCLT Mumbai) The National Company Law Tribunal (NCLT), Mumbai Bench, dismissed a petition filed under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking initiation of insolvency proceedings against a personal guarantor of a corporate debtor. The Financial Creditor had claimed an outstanding debt of Rs. 4,12,55,03,018.89 as on 15 September 2022 and sought to proceed against the personal guarantor in relation to facilities extended to the corporate debtor. According to the Financial Creditor, an interest-bearing secured bu...