Case Law Details
Alchemist Asset Reconstructions Company Vs Deepak Puri (NCLT Delhi)
We have considered the report and the provision of law as projected by the Ld. Counsel for the RP, we concur with the reasoning given by the RP that the Personal Guarantor in this case is an individual, who stood guarantee to the Corporate Debtor and proceedings against him will have to be closed since on the death of the Persona Guarantor, proceedings will abate. It has been rightly pointed out that in a case of proceedings under Section 95 of the IBC, 2016, it is case for initiating Insolvency Resolution Process against the Personal Guarantor and it is not a case for recovery of any amount because that will go contrary to the scheme of IBC, 2016, in such situation on the demise of the Personal Guarantor, an individual who has given his guarantee in the favour of the Corporate Debtor, the question of continuing the proceedings against such a dead person will not arise. Since the proceedings abate, the Section 95 application also has to be closed.
FULL TEXT OF THE NCLT JUDGMENT/ORDER
Mr. Palash Singhai, Ld. Counsel for the Resolution Professional, along with Mr. Saran Mohan Garg, RP are present.
Mr. Nakul Mohta, Ld. Counsel for the Financial Creditor is also present.
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