NCLAT ruled that a personal guarantor’s liability remains enforceable unless expressly discharged by the creditor.
The National Company Law Appellate Tribunal (NCLAT), New Delhi Bench, comprising Justice Rakesh Kumar Jain (Judicial Member) and Technical Members Naresh Salecha and Indevar Pandey, reviewed two appeals on 27.03.2025 and held that a personal guarantor’s liability remains enforceable unless expressly discharged by the creditor. It further ruled that the limitation period for enforcing such liability is extended if the corporate debtor acknowledges the debt under Sections 18 and 19 of the Limitation Act, 1963. Additionally, adverse remarks against the Resolution Professional were expunged as they were made without affording her an opportunity to be heard, violating the principles of natural justice.