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Oct 19, 2023

Bombay HC Clarifies That Secured Creditor may Initiate Recovery Proceedings Against Guarantor Even if Borrower is Under Moratorium

The Bombay HC in the case of Latif Yusuf Manikkoth v. Board of Directors of the Bank of Baroda and Ors.,[1] held that a secured creditor can initiate proceeding under the SARFAESI Act against the guarantor, even when there is a moratorium on action against the borrower under Section 14 of the IBC.

[1] Latif Yusuf Manikkoth v. Board of Directors of the Bank of Baroda and Ors., 2023 SCC OnLine Bom 1467.

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These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.

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