#Section 95 IBC

NCLAT rules that a debenture trustee can file a Section 95 IBC application against a personal guarantor only if the guarantee deed expressly permits it, clarifying the scope of creditor locus in personal insolvency proceedings. This holding impacts debenture trustees, personal guarantors, and lenders relying on guarantee deeds for insolvency actions.

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.

NCLAT clarifies that a power of attorney holder can file an insolvency application under Section 95 IBC if authorised by a board resolution, even without explicit mention in the power of attorney. The ruling underscores the sufficiency of corporate authorisation for initiating personal insolvency proceedings against guarantors.

NCLAT rules that a decree against a personal guarantor does not automatically revive the limitation period for insolvency proceedings under Section 95 of the IBC. The creditor must prove acknowledgment of debt under the Limitation Act to proceed, setting a critical precedent for personal guarantor liability.

NCLAT rules that the clock for initiating insolvency proceedings under Section 95 IBC against a personal guarantor starts only upon formal invocation of the guarantee, not prior demand letters. This clarifies the limitation period for creditors and protects guarantors from premature insolvency actions.