Partnership firm not doesn’t qualify as personal guarantor hence insolvency proceedings u/s. 95 of IBC unjustified

Union Bank of India Vs K M R Enterprises (NCLT Hyderabad)

NCLT Hyderabad held that partnership firm are not included under the definition of personal guarantor covered under section 5(22) of the IBC, 2016. Accordingly, insolvency proceedings u/s. 95 of IBC against partnership firm cannot be initiated.

Facts- The present petition is filed by Union Bank of India (“Creditor”) against M/s KMR Enterprises the personal Guarantor to the corporate debtor M/s. Smaat India Private Limited under section 95 of the Insolvency and Bankruptcy Code, 2016 r/w Rule 7(2)

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