Case Law Analysis
|National Company Law Appellate Tribunal
Section 95 IBC | Limitation Period for Insolvency Against Personal Guarantor Starts from Corporate Debtor’s Default, Not Demand Notice : NCLAT
The NCLAT has clarified that the three-year limitation period under Section 95 of the IBC to initiate insolvency against a personal guarantor begins from the date the corporate debtor defaults, not from the date the creditor issues a demand notice under the guarantee. This resolves ambiguity affecting creditors and guarantors alike, ensuring consistency with the IBC’s statutory framework and preventing tactical delays.