NCLT Admits CIRP for ₹74 Crore Default Due to Valid Corporate Guarantee Invocation

Punjab National Bank Vs Jay Ambey Rice Mills Ltd. (NCLT Allahabad) The present application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by a financial creditor on 15.01.2025 seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against a corporate debtor, which had acted as a corporate guarantor for credit facilities extended to a principal borrower. The principal borrower had availed various credit facilities including cash credit and working capital term loans, sanctioned and enhanced from time to time, aggregating to ₹66 crore. To secure these f...