CoC cannot extinguish right of a particular Secured Creditor to proceed against Personal Guarantor of the Corporate Debtor under the garb of its commercial wisdom – Naveen Kumar Sood RP of Ujaas Energy Ltd. – NCLT Indore Bench
The Adjudicating Authority held that in our considered opinion the CoC can take any commercial decision relating to insolvency of the corporate debtor only, the CoC cannot extinguish right of the particular secured creditor to proceed against the personal guarantor of the corporate debtor under the garb of its commercial wisdom. Such provision in the resolution plan is not only prejudicial to the right of such secured creditor but also against the provisions of law. Hence we cannot approve such resolution plan as it contravenes the provision of section 30(2)(e ) of the Code.
