Authority: National Company Law Appellate Tribunal, Chennai Bench
Order Date: 14 August 2026
Case Overview
The National Company Law Appellate Tribunal (NCLAT) at Chennai is hearing Company Appeal (AT) (CH) (Ins) No.300/2026 filed by GRK Reddy, a personal guarantor, against Pegasus Assets Reconstruction Company Pvt Ltd and another respondent. The appeal arises from proceedings under the Insolvency and Bankruptcy Code.
The appellant's sole contention is that his debt obligation as a personal guarantor has been discharged because the debt of the corporate debtor (for whom he provided the guarantee) has been settled. The appellant argues that this settlement extinguishes his liability under the guarantee. The respondent, Pegasus Assets Reconstruction Company, disputes the appellant's claim regarding the settlement of the corporate debtor's debt.
The Tribunal noted that the issue is "short and pointed" with limited facts and involves a single question of law regarding the discharge of guarantee liability following settlement of the principal debt.
Final Outcome
The Tribunal directed both parties to file their "pointed notes of submissions" on the legal issue and allocated a combined time of half an hour for oral arguments. The appeal was adjourned and listed for hearing on 18 August 2026 in the afternoon. Any interim order previously passed by the Tribunal shall remain in force until the next date of hearing. IA No. 852/2026 was closed as part of this order.
Topics: Personal Guarantee, Debt Discharge, NCLAT Proceedings