Moratorium shall not apply to surety in contract of guarantee for corporate debtor

Citation

AIROnline 2018 SC 113

SUPREME COURT

R.F. NARIMAN , J. and INDU MALHOTRA , J.

Civil Apeeal - 3595 of 2018 D/- 14 - 8 - 2018

State Bank of India v. V. Ramakrishnan and Anr.

Insolvency and Bankruptcy Code (31 of 2016), S.14, S.96, S.101 - Sick Industrial Companies

(Special Provisions) Act (1 of 1986), S.22 - Securitisation and Reconstruction of Financial

Assets and Enforcement of Security Interest Act (54 of 2002), S.13(2), S.13(4) - Moratorium

- Imposition of - Applicability on personal guarantor of corporate debtor - Challenge as

to - Subsequent amendment making it clear that S. 14(3), is now substituted to read that

S.14(1) shall not apply to surety in contract of guarantee for corporate debtor - Report of

insolvency Law Committee, regarding object of amendment was to clarify and set at rest what

Committee thought was an overbroad interpretation of S. 14. and such clarificatory amendment

is retrospective in nature.

 (Paras 24, 25, 27, 29)