Amtek Auto's lenders invoke personal guarantee of former promoter

The issue of personal guarantee of a corporate debtor under Insolvency and Bankruptcy Code has been challenged in various high courts

Lenders of Amtek Auto, one of the top twelve non-performing assets in RBI’s list, have filed a petition invoking the personal guarantee of the company’s former promoter Arvind Dham, according to people in the know.

Banks recently filed a writ petition in the matter at the National Company Law Tribunal’s Chandigarh bench. Two public sector bank executives told Business Standard that even though they have filed their plea, they are ‘very sceptical of meaningful recoveries’ from the ex-promoter. “We still have to make all efforts and exhaust the legal option at our disposal,” a senior bank executive said.

The bank