NCLT Mumbai Admits Section 95 Insolvency Petition Against Personal Guarantor

Admitted a petition filed by an Operational Creditor under Section 95 of the Insolvency and Bankruptcy Code, 2016 against a Personal Guarantor to a Corporate Debtor⚖️. 

We are delighted to share a landmark achievement for our firm! 🙌 

Our team successfully represented Deceuninck Profiles India Pvt. Ltd. before the Hon’ble NCLT, Mumbai Bench in C.P. (IB) No. 68 of 2025, where the Tribunal admitted a petition filed by an Operational Creditor under Section 95 of the IBC against a Personal Guarantor to a Corporate Debtor.
 
Why this order is significant:
Petitions under Section 95 initiated by Operational Creditors are exceedingly rare.

The Hon’ble Bench reaffirmed that the liability of a Personal Guarantor is co-extensive with that of the Principal Borrower, recognising that Operational Creditors too have the locus to initiate insolvency proceedings against a guarantor.

This precedent-setting order broadens the interpretative scope of the IBC and opens a new avenue of remedy for Operational Creditors seeking enforcement against Personal Guarantors — a development traditionally limited to Financial Creditors.

Heartfelt congratulations to our associate Vidhi Suthar for relentless efforts in achieving this milestone. This success is a true testament to our team’s commitment, expertise, and perseverance before the Hon’ble NCLT, Mumbai.