Between The Lines... September, 2018

Article by Vijay Pal Dalmia, Advocate, Supreme Court of India and Delhi High Court, Partner & Head of Intellectual Property Laws Division, Vaish Associates Advocates, India

I. Moratorium passed against the Corporate Debtor is not applicable to Personal Guarantor: Supreme Court decides in favour of Creditor while setting aside the judgement of NCLAT

In case of State Bank of India v. Mr. V. Ramakrishnan and Others (decided on August 14, 2018), the Hon'ble Supreme Court resolved the issue relating to applicability of moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016 ("IBC") on the corporate debtor, against the personal guarantor, where the insolvency proceedings have commenced prior to coming into force of Insolvency and Bankruptcy Code (Amendment) Act, 2018 ("Amendment Act, 2018").