Insolvency & Bankruptcy process against the personal guarantor can be filed under section 60 (2) before the same NCLT and not before the Debt Recovery Tribunal. NCLAT

State Bank of India Vs. D. S. Rajender Kumar [CA (AT) (Insolvency) No. 87 to 91/2018]

The AA vide an order dated 23 January, 2018, did not allow the financial creditors to proceed against the personal guarantors till the moratorium

period came to an end. While disposing of the appeal against the said order, the NCLAT reiterated its decision in the matter of State Bank of India Vs. V.

Ramakrishnan & Ors. It, however, made clear that order of moratorium would be applicable only to the proceedings against the CD and the

personal guarantor, if pending before any court of law/tribunal or authority.

The order of moratorium will not be applicable for filing application for triggering CIRP under sections 7, 9 or 10 of the Code against the guarantor

or the personal guarantor under section 60 (2). If CIRP has been initiated against the CD, the insolvency and bankruptcy process against the personal

guarantor can be filed under section 60 (2) before the same NCLT and not before the Debt Recovery Tribunal.