NCLAT dismisses appeals by Sangeeta and Narain Aggarwal challenging NCLT orders initiating personal insolvency resolution processes against them as personal guarantors.
The Appellate Tribunal upholds the retroactive application of the Section 96(4) IBC amendment, which removes interim moratorium protection for personal guarantors to corporate debtors.
The ruling confirms that the amendment applies to pending proceedings, nullifying the appellants' argument that Equentia's petitions were filed during an existing moratorium.
The decision aligns with High Court judgments and an IBBI circular, emphasizing the amendment's intent to prevent misuse of interim moratorium provisions.