Corporate insolvency resolution process (CIRP) initiated against corporate debtor and corporate...

Corporate insolvency resolution process (CIRP) initiated against corporate debtor and corporate guarantor. Financial creditor granted loan to corporate debtor, secured by corporate guarantee. CIRP completed for corporate guarantor, creditor accepted haircut. Creditor filed Section 7 application against corporate debtor for remaining dues. Held: Liability of guarantor and principal debtor co-extensive. Creditor can proceed against either. Corporate debtor's liability not extinguished by CIRP of guarantor. Creditor subrogated to rights of guarantor against corporate debtor u/s 140 of Contract Act, limited to amount recovered from guarantor. Application maintainable for remaining dues. Appeal dismissed. .....

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