NCLAT Dismisses Bhatnagar Personal Guarantor Insolvency Appeals

NCLAT dismissed appeals by Amit and Sumit Bhatnagar against NCLT order admitting insolvency petitions against them as personal guarantors for Diamond Power Transformers Ltd.
The tribunal upheld UCO Bank and Indian Overseas Bank's right to recover Rs 122.19 crore despite a resolution plan for corporate guarantor Diamond Power Infrastructure Ltd.
The court rejected appellants' arguments on debt extinguishment and limitation, citing Supreme Court precedent on co-extensive guarantor liability.
The impugned NCLT order dated 23.10.2024 initiating insolvency resolution against the personal guarantors was sustained without costs.