Mumbai, Nov. 22 -- The National Company Law Tribunal (NCLT) Mumbai has ruled that the date of default for a personal guarantor must be calculated from the date on which the guarantee is invoked, and not from the date the borrower's loan account is declared a non-performing asset (NPA).

The order was issued by a Bench comprising Judicial Member K.R. Saji Kumar and Technical Member Anil Raj Chellan, while hearing a personal insolvency application filed by Bhavna Ravi Matta, guarantor to North American Mercantile India Pvt Ltd.

Matta had initially treated December 9, 2019, the date the loan was classified as NPA, as the default date. However, the Tribunal held that the correct default date was April 25, 2020.

It noted that the personal gu...