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TMI BlogCorporate Guarantors Become Debtors Under Insolvency Law; CIRP Can Be Initiated Per Section 7 for Defaults.Validity of possession notice - guarantee given by the Corporate Debtor - As a consequence of such default, the status of the guarantor metamorphoses into a debtor or a corporate debtor if it happens to be a corporate person, within the meaning of Section 3(8) of the Code - It was categorically held that there is no reason to limit the width of Section 7 of the Code despite law permitting initiation of CIRP against the corporate debtor, if and when default is committed by the principal borrower. - There need not be any further demur to hold that the CIRP can be initiated in respect of the guarantee given by the Corporate Debtor to the principal Borrower which is a Joint Venture Company. - Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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