STATE BANK OF INDIA versus V. RAMAKRISHNAN & ANR.

Section 14 of the Insolvency and Bankruptcy Code, 2016 applies only to the corporate debtor and does not extend to personal guarantors. Proceedings against the assets of the personal guarantor are not barred by the moratorium imposed under Section 14, and the obligations of the guarantor remain independent and enforceable during corporate insolvency resolution process.

Parties: Appellant: State Bank of India; Respondent: V. Ramakrishnan; Respondent: Veeson Energy Systems
Jurisdiction: India
Judgment Date: 14 August 2018
Procedural Posture: Civil Appeal / Appeal From the National Company Law Appellate Tribunal
Outcome: appeals allowed; impugned decision set aside
Legal Topics: Moratorium Under Insolvency and Bankruptcy Code, Liability of Personal Guarantor, Applicability of Section 14 IBC

Insolvency Banking Moratorium Under Insolvency and Bankruptcy Code Liability of Personal Guarantor Applicability of Section 14 IBC

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Full judgment text Legal principles 2 Authorities cited 14 Party arguments 2 Amounts and remedies 1

Parties

State Bank of India

Appellant

V. Ramakrishnan

Respondent

Veeson Energy Systems

Respondent

Procedural Posture

Civil Appeal / Appeal From the National Company Law Appellate Tribunal

Legal Issues

1 Whether Section 14 of the Insolvency and Bankruptcy Code, 2016 applies to personal guarantors of a corporate debtor.

Ratio Decidendi

Court Disposition

appeals allowed; impugned decision set aside

Orders

The judgment of the National Company Law Appellate Tribunal dated 28.02.2018 is set aside.
Section 14 moratorium does not apply to personal guarantors of a corporate debtor.