Initiation of CIRP - time limitation - personal guarantors - It ...
Insolvency and Bankruptcy
February 29, 2024
Initiation of CIRP - time limitation - personal guarantors - It is submitted that Adjudicating Authority cannot be used as a Forum to recover a time barred debt - The Tribunal determined that the issue of limitation should be considered at the stage of Section 100 of the IBC, not at the appointment stage of the RP under Section 97. - The Tribunal found that the RP, in recommending for approval or rejection of the application, is not precluded from giving a recommendation based on the materials on record, including on the question of whether the debt is time-barred. - The Tribunal dismissed the appeals, holding that there was no error in the NCLT's order appointing the RP for the insolvency resolution process against the personal guarantors.
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