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The #Insolvency and #Bankruptcy Code, 2016 (IBC) provides creditors with a structured mechanism to initiate the #Corporate Insolvency #Resolution Process (CIRP) against a defaulting corporate debtor. Depending upon the nature of the #debt, #creditors may invoke either Section 7 or Section 9 of the Code. While both provisions empower creditors to approach the National #Company #Law #Tribunal (NCLT) for commencement of #CIRP, the threshold requirements and procedural framework

An important aspect here is that, the liability of a personal guarantor is not necessarily limited to the principal debt amount alone. It may also extend to interest payable on the principal debt amount, if otherwise provided in the contract of guarantee. Though, there’s a common assumption among the personal guarantors that the initiation of CIRP automatically extends them the benefit of moratorium. However, IBC provides this legal space to corporate debtors only, personal g