Initiation of CIRP - liability of Guarantor of loan - ...

Case Laws Insolvency and Bankruptcy

February 29, 2024

Initiation of CIRP - liability of Guarantor of loan - acknowledgment of debt by the Principal Borrower shall be binding on the Guarantor or not - The Tribunal found no merit in the argument that the petition was barred by limitation, given the continuous acknowledgment of the debt by the Principal Borrower and the Corporate Guarantor. - The Tribunal concluded that the liability of the Guarantor is co-extensive with that of the Principal Borrower, and acknowledgments of debt by the Principal Borrower extended the limitation period for actions against the Corporate Guarantor as well.

View Source

← Previous Next →

Initiation of CIRP - liability of Guarantor of loan - ...

Case Laws Insolvency and Bankruptcy

February 29, 2024

You may also like:

CIRP - Period of limitation - in terms of the Section 128 of the Indian Contract Act, 1872 the liability of the Respondent was always co-extensive with debt of Principal...

Initiation of CIRP - Corporate Guarantor being a Company - The Company stood guarantor for the loans availed by the three borrowers which are partnership firm and / or...

Initiation of CIRP - corporate guarantor - Period of limitation - A fresh period of limitation is required to be computed from the date of acknowledgment of debt by the...

Withdrawal of the CIRP against the Principal Borrower - bar for the Respondent/Lender in initiating fresh CIRP against the Guarantor or not - , this Tribunal holds that...

Maintainability of petition seeking initiation of CIRP against Personal Guarantor/Respondent - invocation of Bank guarantee and time limitation - The case involved an...

Corporate guarantee not discharged by approval of resolution plan for principal borrower under IBC. Supreme Court judgments in Lalit Kumar Jain, Maitreya Doshi, and Ajay...

CIRP - Action against corporate person (being a corporate debtor) concerning guarantee offered by it in respect of a loan account of the principal borrower, who had...

CIRP has been initiated against the principal borrower - There is no bar for the Financial Creditor to proceed against the principal borrower as well as Corporate...

Initiation of CIRP - if the ‘Contract of Guarantee’ itself mentions that the liability of a Guarantor will be independent and separate than that of ‘Principal Debtor’s...

Initiation of CIRP - Period of limitation - It is clear that on the day of filing the petition U/S 7 of the Code, there was a subsisting liability on the corporate...

Initiation of CIRP - Guarantor - Extinguishment of debt - The NCLAT upheld the NCLT's decision, finding that ECL did not act as a guarantor for ESL's debts based on the...

Initiation of CIRP - corporate guarantor or not - In a contract of guarantee, there are three different entities i.e. i) ‘surety’ ii) ‘principal debtor’ and iii)...

Initiation of CIRP - claim against Corporate Debtor second time on the same set of claims, initially made on principal borrower - The object of the Code is not to allow...

The Resolution Plan excludes personal guarantors, limiting the assignment of debt and security interests to the corporate debtor only. Consequently, the assignee NBFC...

Initiation of CIRP proceedings was challenged on the ground of limitation, which was rejected by the Adjudicating Authority and NCLAT based on the acknowledgement of...

Quick Updates: