Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 2016: s.14 Insolvency and Bankruptcy Code |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Insolvency and Bankruptcy Code, 2016 (31 of 2016) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Insolvency and Bankruptcy Code, 2016: s.14 – Applicabilityof, in case of personal guarantor – Whether s.14 of the Code whichprovides for a moratorium for the limited period mentioned in theCode, on admission of an insolvency petition, would apply to apersonal guarantor of a corporate debtor – Held: s.14 is applicableonly in case of corporate debtor – Said section does not mentionabout the personal guarantor – So far as personal guarantors areconcerned, Part III has not been brought into force, and neitherhas s.243, which repeals the Presidency-Towns Insolvency Act, 1909and the Provincial Insolvency Act, 1920 – The net result of this isthat so far as individual personal guarantors are concerned, theyshall continue to be proceeded against under the aforesaid twoInsolvency Acts and not under the Code – The scheme of s.60(2)and (3) of the Code is clear – the moment there is a proceedingagainst the corporate debtor pending under the 2016 Code, anybankruptcy proceeding against the individual personal guarantorwill, if already initiated before the proceeding against the corporatedebtor, be transferred to the National Company Law Tribunal or, ifinitiated after such proceedings had been commenced against thecorporate debtor, be filed only in the National Company LawTribunal – However, the Tribunal is to decide such proceedingsonly in accordance with the Presidency-Towns Insolvency Act, 1909or the Provincial Insolvency Act, 1920, as the case may be –Presidency-Towns Insolvency Act, 1909 – Provincial Insolvency Act,1920 – Recovery of Debts Due to Banks and Financial InstitutionsAct, 1993 – Banks/Banking. |
Judge | Hon'ble Mr. Justice R.F. Nariman |
Neutral Citation | 2018 INSC 711 |
Petitioner | State Bank Of India |
Respondent | V. Ramakrishnan & Anr. |
SCR | [2018] 10 S.C.R. 974 |
Judgement Date | 2018-08-14 |
Case Number | 3595 |
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