The appeals concern whether Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC), which provides for a moratorium on admission of an insolvency petition, applies to a personal guarantor of a corporate debtor. The Respondent No. 1 is the Managing Director of the Respondent No. 2 Company, which is also the personal guarantor for credit facilities availed from the Appellant, State Bank of India. The Guarantee Agreement between the Appellant and Respondent No. 1 is dated 22.02.2014. When the Respondent No. 2 Company defaulted on its debts, its account was classified as a non-performing asset on 26.07.2015. The Appellant issued a notice on 04.08.2015 under Section 13(2) of the SARFAESI Act demanding Rs.61,13,28,785.48. A possession notice under Section 13(4) of the
…State Bank of India (SBI) extended credit facilities to a corporate debtor, with V. Ramakrishnan acting as a personal guarantor. When the corporate debtor defaulted, SBI initiated recovery proceedings under the SARFAESI Act against both the corporate debtor and the personal guarantor. Subsequently, the corporate debtor initiated insolvency proceedings under Section 10 of the IBC, leading to a moratorium under Section 14. V. Ramakrishnan then argued that the moratorium should also apply to the proceedings against him as the personal guarantor. The NCLT and NCLAT sided with Ramakrishnan, holding that the moratorium under Section 14 extended to personal guarantors. SBI appealed to the Supreme Court, contending that the moratorium should only apply to the corporate debtor
…Sign in to view the parties.
Guarantee Agreement entered into between…
Account of Respondent…
The appeals concern whether Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC), which provides for a moratorium on admission of an insolvency petition, applies to a personal guarantor of a corporate debtor. The Respondent No. 1 is the Managing Director of the Respondent No. 2 Company, which is also the personal guarantor for credit facilities availed from the Appellant, State Bank of India. The Guarantee Agreement between the Appellant and Respondent No. 1 is dated 22.02.2014. When the Respondent No. 2 Company defaulted on its debts, its account was classified as a non-performing asset on 26.07.2015. The Appellant issued a notice on 04.08.2015 under Section 13(2) of the SARFAESI Act demanding Rs.61,13,28,785.48. A possession notice under Section 13(4) of the
…State Bank of India (SBI) extended credit facilities to a corporate debtor, with V. Ramakrishnan acting as a personal guarantor. When the corporate debtor defaulted, SBI initiated recovery proceedings under the SARFAESI Act against both the corporate debtor and the personal guarantor. Subsequently, the corporate debtor initiated insolvency proceedings under Section 10 of the IBC, leading to a moratorium under Section 14. V. Ramakrishnan then argued that the moratorium should also apply to the proceedings against him as the personal guarantor. The NCLT and NCLAT sided with Ramakrishnan, holding that the moratorium under Section 14 extended to personal guarantors. SBI appealed to the Supreme Court, contending that the moratorium should only apply to the corporate debtor
…Guarantee Agreement entered into between…
Account of Respondent…