NCLT-Amaravati Bench

OTS to which the Personal Guarantor is not a party cannot be construed as an acknowledgment on the part of the Personal Guarantor, Dena Bank vs. C. Shivakumar Reddy & Anr. judgment does not apply to the Personal Guarantor – State Bank of India Vs. Mr. P.Raja Rao – NCLT Amaravati Bench

The Adjudicating Authority observed that the Personal Guarantor was not a party to the said OTS proposal and no signatures are taken from the Personal Guarantor in respect of the said OTS proposal. A judgment relied upon by the Counsel for the FC which is rendered by the Hon’ble Supreme Court of India in Dena Bank (now Bank of Baroda) vs. C. Shivakumar Reddy & Anr. (2021) ibclaw.in 69 SC, is on the point whether OTS proposal would amount to an acknowledgment on the part of the CD.

The Adjudicating Authority held that the judgment does not pertain to the Personal Guarantor. The question whether Section 18 of the Limitation Act, applies to the proceedings under IBC is too well settled that it is applicable. But from the facts, it has to be seen whether there is any acknowledgment on the part of the Personal Guarantor, when alone Section 18 of the Limitation Act, can be made applicable.

OTS to which the Personal Guarantor is not a party cannot be construed as an acknowledgment on the part of the Personal Guarantor, Dena Bank vs. C. Shivakumar Reddy & Anr. judgment does not apply to the Personal Guarantor – State Bank of India Vs. Mr. P.Raja Rao – NCLT Amaravati Bench Read Post »

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