No proceedings against Moser Baer

If a personal guarantor passes away, the proceedings against him shall abate, the New Delhi bench of the National Company Law Tribunal (NCLT) has held, in the case of Alchemist Asset Reconstruction Company Vs Deepak Puri. Puri was the personal guarantor of the corporate debtor, Moser Baer India Ltd. The financial creditor, in this case, had filed an application under Section 95 of the IBC to initiate corporate insolvency resolution process (CIRP) against Puri. It later came to the notice of the Resolution Professional that the personal guarantor Deepak Puri had passed away. The Resolution Professional recommended that the proceedings against the personal guarantor be closed. Deepak Puri, Chairman of Moser Baer, recipient of Padma Shri award in 2010, was being investigated by the CBI in a Rs. 727.25 crore bank fraud case. He died in California on October 2, 2021.