#Deed of Guarantee

NCLAT ruled that guarantors remain liable for total debt despite deed clause limiting liability to mortgaged property value, upholding DRT’s crystallised debt and confirming that guarantee provisions override security clauses under IBC Section 114.

NCLAT rules that a personal guarantor's insolvency can be initiated under the IBC based on contractual notice and cumulative evidence, even if postal receipts are absent. The ruling clarifies that strict proof of service is not mandatory if the guarantee deed authorizes alternative invocation methods, impacting lenders and guarantors in insolvency proceedings.