Personal Guarantor Insolvency Must Go to NCLT Because Corporate CIRP Was Admitted

Kotak Mahindra Bank Ltd Vs State of Maharashtra thr. Government Pleader & Ors (Bombay High Court) The Bombay High Court disposed of a batch of writ petitions raising a common issue on jurisdiction over insolvency proceedings against personal guarantors when a Corporate Insolvency Resolution Process (CIRP) of the principal borrower is pending. The petitioners, secured creditors, challenged insolvency proceedings initiated before the Debt Recovery Tribunal (DRT) under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC) against personal guarantors, contending that such proceedings w...