MUMBAI: Indias dedicated bankruptcy court has admitted a loan-default case against a corporate guarantor, sending a stern message to companies that pledging guarantees on behalf of a borrower is not a mere formality.
An Ahmedabad bench of National Company Law Tribunal (NCLT) has begun insolvency proceedings against starch maker Anil Ltd after one of its associate companies, Anil Nutrient Ltd, defaulted a term loan disbursed by Reliance Commercial Finance.
The lender, the demerged arm of Reliance Capital, had advanced about Rs 10 crore term loan to Anil Nutrient.
The application filed by the applicant deserves to be admitted, Bikki Raveendra Babu, judicial member at the NCLT Ahmedabad, said in the order that admitted the case against…
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