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TMI Blog2019 (1) TMI 331X X X X Extracts X X X X X X X X Extracts X X X X ..... guarantor company will also come within the meaning of ‘Corporate Debtor’ qua the ‘Financial Creditor’ in whose favour the guarantee has been given. Service of notice of admission - Held that:- Even if it is accepted that it was not served, we are not inclined to remit the case on such ground as it will be mere formality, as admittedly debt is payable by the ‘Corporate Debtor’ and the ‘Corporate Debtor’ defaulted to pay. It is not the case of the Appellant that if the notice would have been served before admission of the application under Section 7, the ‘Corporate Debtor’ would have cleared the debt amount. No relief can be granted - appeal dismissed. - Company Appeal (AT) (Insolvency) No. 320 of 2018 - - - Dated:- 29-11-2018 - Mr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d counsel for the Appellant submitted that there was no provision for filing an application under Section 7 of the I B Code against the Corporate Guarantor except against the Personal Guarantor . However, such submission cannot be accepted, in view of the definition of Financial Creditor as defined in Section 5(7) read with Section 5(8) of the I B Code , which reads as follows: 5. Definitions . ─ ( 7) financial creditor means any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred to; ( 8) financial debt means a debt along with interest, if any, which is disbursed against the consideration for the time value of money and includes- ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y guarantee or indemnity for any of the items referred to in sub-clauses (a) to (h) comes within the meaning of Financial Debt . The Corporate Debtor having given guarantee on behalf of the principal borrower for the items referred to in sub-clause (a), guarantor company will also come within the meaning of Corporate Debtor qua the Financial Creditor in whose favour the guarantee has been given. 5. Learned counsel for the Appellant placed reliance on notice issued under the SARFAESI Act, 2002 on 18th November, 2013, from which it is clear that the Financial Creditor has already invoked the guarantee against the Corporate Debtor and, therefore, it cannot take plea that the guarantor does not come within the meaning of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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