*Insolvency Decisions 2026 : Mukul Somany v. DBS Bank Ltd [2026] GCtR 132 (NCLAT)*
Default before issuance of notice under Rule 7(1) of Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 must exist on the part of the personal guarantor and notice under Rule 7(1) cannot be treated as a notice invoking guarantee.
When Financial Creditors had not invoked the guarantee prior to issuing demand notice in Form B, the application under Section 95 of IBC, 2016 could not have been filed by Financial Creditor before invoking the guarantee.
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