Debt

Debt financing

SC stays NCLAT order allowing lenders to go after personal guarantors

Business Line  

The Supreme Court has stayed the NCLAT order that allowed lenders to initiate insolvency proceedings against personal guarantors of a corporate debtor even when no insolvency proceeding is pending against the corporate debtor before the NCLT . The NCLAT had said there is no bar on IBC proceedings against a personal guarantor if no process is on against the corporate debtor.