NCLAT Reverses NCLT’s Direction to Invoke Personal Guarantees

Mukesh Goel Vs Santanu Brahma & Anr (NCLAT Delhi)

The National Company Law Appellate Tribunal (NCLAT) in Delhi has ruled in favor of Mukesh Goel, the Resolution Applicant, by setting aside parts of an order from the National Company Law Tribunal (NCLT). The NCLT’s order had approved the resolution plan for M/s Aanchal Ispat Ltd but included a directive for financial creditors to invoke personal guarantees provided by the company’s guarantors. Goel appealed this specific directive, arguing it was contrary to the approved resolution plan.

The NCLAT observed that the resolution plan, which was approved with 100% support from the Committee of Creditors (CoC), explicitly stated that all personal and corporate guarantees would be released upon the full implementation of the plan and payment of ₹54.50 crores. The CoC’s counsel also affirmed this position, confirming that the invocation of personal guarantees was not necessary given the terms of the approved plan. The NCLAT concluded that since the resolution plan and the CoC had already agreed to release the guarantees upon payment, the NCLT’s direction to invoke them was inconsistent with the approved terms and therefore unsustainable. The NCLAT ordered the deletion of the contentious paragraphs from the NCLT’s order, aligning the final directive with the resolution plan agreed upon by all parties.