Case Law Analysis
|Bombay High Court
Section 96 IBC Moratorium Applies Only to Personal Guarantors, Not Principal Borrower : Bombay HC
Bombay High Court clarifies that the moratorium under Section 96 of the Insolvency and Bankruptcy Code (IBC) protects only personal guarantors, not the principal borrower. Creditors retain the right to proceed against the borrower under the Contract Act, ensuring recovery actions remain unaffected by guarantors' insolvency.