https://www.taxtmi.com/caselaws?id=765563 The NCLAT dismissed an appeal challenging initiation of Personal Insolvency Resolution Process against a guarantor. The tribunal held that the Section 95 application was filed within the three-year limitation period, running from the demand notice expiry date. Despite no direct privity of contract between the creditor and guarantor, the personal guarantee could be enforced through the security trustee arrangement, as trustees held security for lenders' benefit. The debt was crystallized despite pending DRT proceedings and counter-claims. No Section 100(2) negotiation directions were required absent a proposed repayment plan. The undervalued share sale argument lacked merit. en-us Thu, 23 Jan 2025 00:00:00 +0530 Tue, 04 Feb 2025 08:46:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765563 The NCLAT dismissed an appeal challenging initiation of Personal Insolvency Resolution Process against a guarantor. The tribunal held that the Section 95 application was filed within the three-year limitation period, running from the demand notice expiry date. Despite no direct privity of contract between the creditor and guarantor, the personal guarantee could be enforced through the security trustee arrangement, as trustees held security for lenders' benefit. The debt was crystallized despite pending DRT proceedings and counter-claims. No Section 100(2) negotiation directions were required absent a proposed repayment plan. The undervalued share sale argument lacked merit. Case-Laws IBC Thu, 23 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765563