Whether an insolvency petition under Section 95 of the IBC, 2016 can be filed against a Partnership Firm | Whether a Partnership Firm is covered under the definition of Personal Guarantor under Section 5(22) of Insolvency Code – Union Bank of India Vs. KMR Enterprises and Anr. – NCLT Hyderabad Bench
The Hon’ble NCLT Hyderabad Bench has carefully perused the notification issued by Ministry of Corporate Affairs on 15.11.2019, Section 79(1) of IBC, 2016 and the Section 5(22) of IBC, 2016 and held that conjoint reading of all the above provisions clearly conveys that Section 95 proceedings cannot be initiated against the partnership firm which is not an individual.
