Case Law Analysis
|National Company Law Appellate Tribunal
IBC Section 10A | Corporate Guarantor's Default Triggers Only Upon Guarantee Invocation, Not Principal Borrower's NPA : NCLAT
NCLAT clarifies that a corporate guarantor's liability under the Insolvency and Bankruptcy Code arises solely upon invocation of the guarantee, not the principal borrower's default date. The ruling reinforces Section 10A's moratorium protection, shielding guarantors from insolvency proceedings until the creditor enforces the guarantee deed.