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MORATORIUM ON DISPOSAL OF PROPERTY OF PERSONAL GUARANTOR OF THE CORPORATE DEBTOR

Extending the applicability of the moratorium declared under the Insolvency and Bankruptcy Code, 2016 (“IBC Code”) to the ‘personal guarantors’ acting as surety in a contract of guarantee to a corporate debtor, the National Company Law Appellate Tribunal (“NCLAT”) has in its recent decision in the matter of State Bank of India vs Mr. V. Ramakrishnan and M/s. Veesons Energy Systems Pvt. Ltd1, held that the “Moratorium’ will not only be applicable to the property of the ‘Corporate Debtor’ but also on the ‘Personal Guarantor.”

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