Notice u/r 7 of Insolvency Rules doesn’t amount to invoking of guarantee: NCLAT Delhi

State Bank of India Vs Deepak Kumar Singhania (NCLAT Delhi)

NCLAT Delhi held that issuance of notice under rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 doesn’t amount to invoking of guarantee.

Facts- The Corporate Debtor – LML Ltd. was extended Financial Facilities by State Bank of India. The Respondent – Deepak Kumar Singhania executed a Deed of Guarantee dated 28.03.2005 along with other two Personal Guarantors in favour of SB

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