---
title: "Personal Guarantors to Corporate Debtors: A Guide to Insolvency Resolution under IBC"
date: 2024-12-17
author: "Shrishail Kittad"
url: https://www.indialaw.in/blog/insolvency-bankruptcy/guarantors-corporate-debtors-ibc/
---

# Personal Guarantors to Corporate Debtors: A Guide to Insolvency Resolution under IBC

Posted On - 17 December, 2024 •

By - [Shrishail Kittad](https://www.indialaw.in/people/adv-shrishail-kittad/ "Posts by Shrishail Kittad") and [Rahul Sundaram](https://www.indialaw.in/people/rahul-sundaram/ "Posts by Rahul Sundaram")

[![Personal Guarantors to Corporate Debtors: A Guide to Insolvency Resolution under IBC](https://www.indialaw.in/wp-content/uploads/8-Critical-Guidelines-to-Ensure-Fair-Settlements-in-Divorce-Cases.jpg)](https://www.indialaw.in/wp-content/uploads/8-Critical-Guidelines-to-Ensure-Fair-Settlements-in-Divorce-Cases.jpg)

## Introduction

The Insolvency and Bankruptcy Code (IBC), 2016, provides a robust legal framework to resolve insolvency and ensure the timely reorganization of debts. Sections 94 to 120, specifically, deal with the insolvency resolution process for individuals, firms and personal guarantors to corporate debtors. However, as per the **Central Government notification dated 15th November 2019**, these provisions have currently been made applicable **only to personal guarantors to corporate debtors** and not to other individuals or partnership firms. The notification further specifies that all applications under **Sections 94 and 95** must be filed before the **National Company Law Tribunal (NCLT)** instead of the Debt Recovery Tribunal (DRT). This change ensures alignment between the insolvency process for corporate debtors and their personal guarantors, creating a unified resolution framework.

## Detailed Overview of Sections 94–120

## Section 94: Application by Debtors

A personal guarantor can initiate the insolvency resolution process by submitting an application to the NCLT. The application must provide a statement of affairs, include details of the debt owed, and comply with prescribed forms. The debtor cannot file such an application if they are an undischarged bankrupt or involved in an ongoing insolvency or bankruptcy process.

## Section 95: Application by Creditors

Creditors, including secured and unsecured creditors, can apply for insolvency resolution against the personal guarantor. The application must specify:

- The debt amount and proof of default.
- Whether the creditor relinquishes security (in case of secured creditors).

The creditor may file the application through a resolution professional.

## Section 96: Interim-Moratorium

Once an application under Section 94 or 95 is filed:

- An **interim-moratorium** begins immediately, halting all recovery proceedings against the personal guarantor’s property.
- Creditors are barred from initiating or continuing legal actions during this period.

## Sections 97–99: Resolution Professional’s Role

- The NCLT appoints a **resolution professional** within 7 days of receiving the application.
- The resolution professional examines the financial position of the personal guarantor, collects evidence, and submits a report within 10 days recommending acceptance or rejection of the application.

## Section 100: Admission or Rejection of Application

Based on the resolution professional’s report, the NCLT decides whether to admit or reject the application within 14 days. If rejected, the tribunal must record its reasons.

## Section 101: Moratorium

Upon admitting the application, a **moratorium** begins, lasting for 180 days or until a repayment plan is approved. During the moratorium:

- Legal proceedings and recovery actions are prohibited.
- Creditors cannot enforce claims against the personal guarantor’s property.

## Sections 102–106: Creditor Claims and Meetings

- Public notice is issued inviting creditors to submit claims.
- The resolution professional compiles a **list of creditors** and convenes a meeting to discuss the proposed repayment plan.

## Sections 107–110: Repayment Plan Approval

- Creditors review, modify, and approve the repayment plan through a voting process.
- The approved plan is submitted to the NCLT for confirmation.
- Once confirmed, the plan becomes binding on all creditors and the personal guarantor.

## Sections 111–118: Implementation of the Repayment Plan

- The resolution professional oversees the implementation of the repayment plan.
- If the personal guarantor defaults on the plan, the creditors can file for a **bankruptcy order** against them.

## Section 119: Discharge Order

After successful implementation of the repayment plan, the NCLT issues a **discharge order**, releasing the personal guarantor from all debts covered under the plan. However, this does not affect the liability of other parties, such as co-guarantors or corporate debtors.

## Section 120: Code of Conduct for Resolution Professionals

Resolution professionals are required to adhere to a strict code of conduct as prescribed under Section 208 of the IBC, ensuring impartiality, transparency, and efficiency.

## Conclusion

Sections 94 to 120 of the IBC, 2016, provide a comprehensive framework for resolving the insolvency of **personal guarantors to corporate debtors**, ensuring greater accountability and alignment with the corporate insolvency process. The **notification of 15th November 2019** marks a significant reform by empowering the **NCLT** as the adjudicating authority for such cases. This integration streamlines the resolution process, enabling a coordinated approach to address the financial distress of corporate debtors and their guarantors. By introducing provisions like moratoriums, structured creditor meetings, and repayment plans, the Code balances the rights of creditors with the opportunity for debtors to restructure and resolve their financial obligations. Overall, this framework fosters efficiency, transparency, and fairness, further strengthening India’s insolvency ecosystem.

For further details write to [contact@indialaw.in](mailto:contact@indialaw.in)

Disclaimer - This article is intended for general informational purposes and does not constitute legal advice. Readers should seek specific legal counsel in relation to their individual circumstances.

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# IndiaLaw LLP — Offices & Contact Details

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## General Contact

| | |
|---|---|
| **Website** | https://www.indialaw.in |
| **Primary email** | contact@indialaw.in |
| **Primary phone** | +91 836-9995919 |
| **Contact form** | https://www.indialaw.in/connect/ |
| **Careers (separate channel)** | https://www.indialaw.in/careers/ |


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## All Offices (9 locations across 8 cities)

### 1. Mumbai — Registered Office & Head Office (Apeejay Chambers)

| | |
|---|---|
| **Address** | Apeejay Chambers, Ground Floor, Wallace Street, Fort, Mumbai – 400 001 |
| **Phone** | [022-6924-7400](tel:02269247400) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/mumbai/ |
| **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate · IP |
| **Notes** | The HQ. 5 partners based here. Handles PAN-India litigation, arbitration, corporate, banking, IP and real estate practice. Largest team across all offices. |

### 2. Mumbai — Non-Litigation Office (Excelsior, Fort)

| | |
|---|---|
| **Address** | 4th Floor, New Excelsior Theatre Pvt. Ltd., Amrit Keshav Nayak Marg, Fort, Mumbai – 400 001 |
| **Phone** | [022-697-40500](tel:022-697-40500) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/mumbai/ |
| **Practice focus** | Non-litigation only — consultations, negotiations, transactional work |
| **Notes** | Opened 2024. Litigation and arbitration remain at the Apeejay Chambers head office. |

### 3. Delhi

| | |
|---|---|
| **Address** | Flat No. 1107 & 1108, Prakashdeep Building, Tolstoy Marg, Connaught Place, New Delhi – 110 001 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/delhi/ |
| **Practice focus** | Litigation · Arbitration · Insolvency & Bankruptcy · Corporate · Banking · Real Estate |
| **Notes** | 3 partners based here. Located near the Supreme Court of India, Delhi High Court and other appellate bodies. |

### 4. Kolkata

| | |
|---|---|
| **Address** | Centre Point Building, Room No. 214, 2nd Floor, Premises No. 21, Hemanta Basu Sarani, Opp. Great Eastern Hotel, P.S. Hare Street, Kolkata – 700 001, West Bengal |
| **Phone** | [+91 33 4813 1001](tel:+913348131001) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/kolkata/ |
| **Practice focus** | Insolvency & Bankruptcy · Commercial & Civil Litigation · Arbitration · Banking Litigation · Real Estate · Labour & Employment · Consumer |
| **Notes** | Advises banks, NBFCs, MSMEs and corporates on transactions and dispute resolution. Works in close coordination with the Mumbai HO. |

### 5. Chennai

| | |
|---|---|
| **Address** | GF-A, 19 Casa Major Road, Egmore, Chennai – 600 008 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/chennai/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Full-fledged office with experienced legal team. Supported by Mumbai HO. |

### 6. Bengaluru (Bangalore)

| | |
|---|---|
| **Address** | INDIALAW LLP, No. 7 Chinnaswamy Mudaliar Road, Shivaji Nagar, Bangalore – 560 051 |
| **Phone** | [080-4167-2444](tel:08041672444) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/bengaluru/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate · Family Laws · Labour |
| **Notes** | Located near Bangalore High Court. Handles corporate, commercial, banking and matrimonial disputes. |

### 7. Hyderabad

| | |
|---|---|
| **Address** | 403, 4th Floor, Sanatana Ecstasy Building, beside Tanishq Show Room, Himayathnagar, Hyderabad – 500 029, Telangana |
| **Phone** | [040-6666-5166](tel:04066665166) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/hyderabad/ |
| **Practice focus** | Litigation · Banking · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Particularly well known for complex banking matters and real estate transactions. |

### 8. Cochin (Kochi)

| | |
|---|---|
| **Address** | Second Floor, Pulikkal Building, K.K. Padmanabhan Road, Ernakulam North – 682 018, Kerala |
| **Phone** | [0484-3583961](tel:04843583961) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/cochin/ |
| **Practice focus** | Litigation · Insolvency & Bankruptcy · Real Estate |
| **Notes** | Commercial disputes, property litigation, financial-claim arbitrations and real estate transactions. |

### 9. Noida (NCR)

| | |
|---|---|
| **Address** | No. 16 & 17, Silver Offices, 17th Floor, Wave One, Sector 18, Noida – 201 301 |
| **Phone** | (general line: +91 836-9995919) |
| **Email** | contact@indialaw.in |
| **Page** | https://www.indialaw.in/noida/ |
| **Practice focus** | Aviation · Insurance · Mergers & Acquisitions · Corporate |
| **Office head** | **Mr. Dinesh Gupta** (joined August 2025 to lead and expand the corporate practice) |
| **Notes** | Newest office. Sector-focused on highly regulated industries serving NCR-based clients. |

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## Quick-Dial Phone List

| Office | Phone |
|---|---|
| Mumbai HO (Apeejay) | 022-6924-7400 |
| Mumbai Excelsior | 022-697-40500 |
| Kolkata | +91 33 4813 1001 |
| Bengaluru | 080-4167-2444 |
| Hyderabad | 040-6666-5166 |
| Cochin | 0484-3583961 |
| **General / Marketing line** | **+91 836-9995919** |

Delhi, Chennai and Noida route through the general number.

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- LinkedIn: https://www.linkedin.com/company/indialaw
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