The Court noted that the legal issue with regard to the liability of the personal guarantor of the corporate debtor whose liability is co-extensive with the principal debtor, has been answered.
However, for the rest of the issues, if any, arise with regard to the nature or extent of liability of the petitioner or another director of the company as personal guarantor, the same were not answered as no arguments have been placed in that regard, the Court added.
“In view of the above discussion, the challenge to the demand notice for dues of electricity, issued jointly in the name of the directors of the corporate debtor, the defaulter company which went into insolvency cannot be sustained on the ground that in view of the acceptance of the resolution plan under Section 31 of the Code, all liabilities of the directors, who may be the guarantor, stood automatically discharged/extinguished,” the Court concluded.
Source: Barandbench
