Case Law Analysis
|National Company Law Appellate Tribunal
IBC Section 94 | Moratorium Cannot Be Invoked Post-SARFAESI Possession Notice to Frustrate Recovery : NCLAT
NCLAT rules that a personal guarantor filing a Section 94 application after a SARFAESI possession notice has been issued, and enjoying a two-year interim moratorium, constitutes abuse of process to frustrate secured creditor recovery. The ruling clarifies that the IBC moratorium for guarantors does not override SARFAESI enforcement once possession proceedings have commenced.