Case Law Analysis
|National Company Law Appellate Tribunal
Section 7 IBC | Recovery Certificate Resets Limitation Period for CIRP Against Corporate Guarantors : NCLAT
NCLAT rules that a recovery certificate issued against a principal borrower triggers a fresh three-year limitation period for financial creditors to initiate CIRP against corporate guarantors. This holding clarifies the interplay between debt recovery mechanisms and IBC timelines, impacting asset reconstruction companies and lenders pursuing guarantor liability.