IBCArticle·26 September 2026
NCLT says Security Trustee Structure Does Not Bar Section 7 Against Guarantor
By J the App
Executive Summary
SBI invoked a corporate guarantee given by Pangea Fabrics for the borrowings of Suryajyoti Spinning Mills, which had gone into liquidation. Pangea argued that only the Security Trustee could enforce the guarantee and that the Section 7 petition was time-barred; NCLT rejected both objections and admitted the CIRP.
Domain | IBC | Regulatory
The Position
A Security Trustee arrangem...
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