STATE BANK OF INDIA vs V. RAMAKRISHNAN

The Supreme Court ruled that Section 14 of the Insolvency and Bankruptcy Code, 2016, which imposes a moratorium on insolvency proceedings, does apply to personal guarantors of corporate debtors. The Court held that since personal guarantors can be bound by a Resolution Plan under Section 31 and are integral to the insolvency process, they are entitled to the same protections as the corporate debtor. Consequently, the appeal against the National Company Law Appellate Tribunal's decision was dismissed, affirming the applicability of the moratorium to personal guarantors.