Interim moratorium of one guarantor wouldn’t ipso facto apply against co-guarantor

Axis Trustee Services Limited Vs Brij Bhushan Singal (Delhi High Court) Delhi High Court held that the interim moratorium under Section 96 Insolvency and Bankruptcy Code in respect of one of the guarantors would not ipso facto apply against a co-guarantor. Facts- A Facility Agreement dated 14th April, 2011 was executed between Bhushan Steel and various financial creditors. Pursuant to the said Facility Agreement, the plaintiff was appointed as the security agent vide Security Agent Agreement dated 18th May, 2011 to look after the beneficial interest of the lenders. The repayment obligations of...