Guarantor can Hope to Get Money Back Under IBC
Mumbai: A guarantor, who lost money after banks invoked the guarantee, can hope to recover his dues under the new recovery law –– the Insolvency and Bankruptcy Code. The Delhi Bench of the National Company Law Tribunal(NCLT)hasadmittedacasefiledbyaguarantor under insolvency resolution proceedings for a loan where the borrower had taken the loan from a bank, but failed to repay it.
The guarantor, Davinder Ahluwalia & Anr, approached NCLT under IBC against M/s Summit Aviation to recover dues worth ₹ 1.05 crore, which Punjab National Bank collected from the guarantor. The corporate debtor has mortgagedimmovablepropertywith PNBfortheloanwhileDavinder Ahluwalia & Anr was the guarantor.
To reduce the liability of the borrower, the guarantor had paid a sum of ₹ 1.05 crore to the bank but the borrower failed repay, following which the guarantor has approached the NCLT. The tribunal has appointedAbhishekAnandasthe Interim Resolution Professional.
Since the case has been admitted under the IBC law, the guarantor would be able to recover his dues in 270 days since as per thenorms,thecreditorshaveto come up with a revival plan within 270 days, or else the assets of the company would be put for liquidation.
“Had it not been for IBC, it would have taken ages for a guarantor to recover his dues. Thisrulingrecognisestheright of the guarantor with justice ensured in a timely manner,” said Sameer Kakar, an insolvency professional registered with the Insolvency and Bankr-uptcyBoard of India.
The new recovery law, which was enacted early this calendar, has given hopes not just to lenders for quick recovery of their dues but also to different sections of the society.
M/s Summit Aviation has mortgaged immovable property with PNB for loan
Davinder Ahluwalia & Anr was the guarantor
To reduce liability of borrower, guarantor paid ₹ 1.05 crore to the bank
But borrower failed to repay
Guarantor has approached NCLT