Lenders can move insolvency plea against guarantor without initiating CIRP for defaulting companies
NEW DELHI: The National Company Law Appellate Tribunal (NCLAT)has held that the lenders of defaulting companies can initiate corporate insolvency resolution process against corporate guarantors without invoking CIRP for the principal borrowers. A three member bench of the appellate tribunal in a judgement said that corporate guarantors are also financial creditors. “We hold that it […]