Personal Guarantee survives IBC resolution

The Mumbai Bench of the National Company Law Tribunal admitted insolvency proceedings against Anil Ambani in his capacity as a personal guarantor to loans extended by State Bank of India to Reliance Communications Ltd. and Reliance Infratel Ltd. 

The Tribunal rejected the contention that approval of the corporate debtors’ resolution plans had extinguished the liability under the personal guarantee. 

It further held that a Resolution Professional acting under Section 99 of the Insolvency and Bankruptcy Code performs a recommendatory and non-adjudicatory function and is not required to conclusively determine complex legal disputes concerning discharge of guarantees.