The issue of the extent of Limited Guarantee is to be decided at the time of finalisation of Payment Plan, not at Section 95 application admission stage – Nilay R. Shah Vs. State Bank of India and Anr. – NCLAT New Delhi
In this case, Personal Guarantor challenged insolvency admission order passed under Section 95 of IBC on the ground of limited Guarantee.
The Hon’ble NCLAT held that the Application has only been admitted and the payments Plan have yet to be finalised. The said question is to be looked into by the Adjudicating Authority at the time of finalisation of the payment Plan.