NCLT admits plea under Section 94(1) IBC for initiation of insolvency process against personal guarantor

In one of the firsts, the National Company Law Tribunal, Delhi admitted a petition under Section 94(1) of Insolvency & Bankruptcy Code for initiation of insolvency process against a personal guarantor. A two-member Bench of Member (Judicial) Mohd Sharief Tariq and Member (Technical) Narendra Kumar Bhola passed the admission order in a section 94 plea by the debtor, one Anil Syal (Debtor).The Debtor was the personal guarantor to Union Bank of India for an amount of Rs 40 crore in relation to the credit facility extended in favour of FLPL Logistics PVT LTD.On the presentation of the application, the NCLT appointed a Resolution Professional and sought a report from him under Section 99 IBC.