Case Law Analysis
|National Company Law Appellate Tribunal
Section 121(2) IBC | Three-Month Deadline for Personal Guarantor Bankruptcy Applications is Directory, Not Mandatory : NCLAT
NCLAT rules that the three-month timeline under Section 121(2) of the IBC for filing bankruptcy applications against personal guarantors is directory, not mandatory, allowing condonation of delay under the Limitation Act. This decision clarifies that financial creditors can proceed with insolvency applications even beyond the prescribed period, ensuring flexibility in personal guarantor insolvency proceedings.