IBCArticle·19 March 2026
Invocation Defines Limitation
By J the App
Executive Summary
This decision clarifies that a corporate guarantor’s liability crystallizes upon valid invocation of the guarantee, and limitation must be computed accordingly. The Tribunal rejected hyper-technical objections on notice discrepancies and upheld that IBC proceedings remain independent of recovery actions. The ruling strengthens creditor rights while maintaining procedural fairness.
The matter arises from a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Punjab National Bank before the National Company Law Tribunal, Allaha...
Read the full article in the app
This is a premium article. Download J the App to read the complete content.