Personal guarantor has no right against corporate debtor: NCLATDecember 24 2018
The NCLAT has passed a judgment ruling that a personal guarantor's right to subrogation against a corporate debtor can be taken away in a resolution plan. The Bench comprising Justices Mukhopadhaya and Bansi Lal Bhat was hearing an appeal filed by the promoters of Sharon Bio Medicine.
The question of liability of a personal guarantor in case of companies going under insolvency was discussed in length by the Supreme Court in the case of
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