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2017 (7) TMI 1262 - HC - Indian LawsRecovery proceedings - petitioners are the guarantors of M/s LML Limited, Kanpur, which was declared as sick industrial company by the Board of Industrial and Financial Reconstruction on 8.5.2007 - Section 60 (1) of the Insolvency and Bankruptcy Code, 2016 - Held that:- Section 60 (1) of the Insolvency and Bankruptcy Code, 2016 stipulates that the adjudicating authority even in relation to personal guarantors would only be NCLT and the petitioners are entitled to approach the NCLT under Section 60 (2) relating to their insolvency resolution under Section 94 of the IB Code. The petitioners are unable to do so as the said provisions of the IB Code have not yet been notified by the Central Government. The DRT has failed to take notice of Part-III of IB Code and the provisions of IB Code, 2016 will prevail over the provisions of the Act of 1993. Since the petitioners are the directors of the company (in liquidation), they are statutorily bound to provide their assistance to the resolution professional appointed under the IB Code for the company (in liquidation) by the NCLT. The DRT has completely erred in understanding the objects of the IB Code while deciding the application in question - matter requires consideration.
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