courtkutchehry.com National Company Law Tribunal

Siripuram Developers Private Limited And Ors Vs. Andhra Bank (Now Merged With Union Bank Of India) And Ors., (2020) 08 NCLT CK 0031 NCLT allowed the application filed by the applicants under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, inter- alia to set aside the impugned possession notice dated 11.03.2020 and direct the Respondent No. 1 Bank to not take any coercive steps as against the Applicant companies till the closure of liquidation proceedings. While allowing the application NCLT held that though it is a settled position of Law that the liabilities of a surety is coextensive with that of principal debtor and further in view of the Law settled by the Hon'ble NCLAT and Hon'ble Supreme Court that a Financial Creditor can proceed to enforce the guarantees against the guarantors. Thus the settled position of Law, that there should not be any restraints on a Financial Creditor to proceed against the Guarantor even after the initiation of CIRP, approval of Res...