The NCLAT held: 1) The guarantees executed by the guarantor were ...

Corporate guarantor's liability upheld, revocation invalid under IBC.

January 11, 2025

Case Laws IBC AT

The NCLAT held: 1) The guarantees executed by the guarantor were irrevocable, unconditional, and continuous, rendering the unilateral revocation invalid. 2) The liability of the surety is co-extensive with the principal debtor, unless contracted otherwise. 3) The CIRP proceedings against the guarantor were maintainable and filed within the limitation period. 4) The adverse observations against the Resolution Professional's conduct violated principles of natural justice as clarification was not sought, despite the disclaimer provided.

View Source

← Previous Next →

The NCLAT held: 1) The guarantees executed by the guarantor were ...

Corporate guarantor's liability upheld, revocation invalid under IBC.

January 11, 2025

Case Laws IBC AT

You may also like:

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 - Corporate Guarantee and Liability - The Appellate Tribunal acknowledged that the company had issued corporate guarantees to financial institutions. Despite the...

Provision of IBC are overriding the provisions of SARFAESI or not - Recovery from the Personal Guarantor of a corporate debtor - The securitisation proceedings against...

Corporate insolvency resolution process (CIRP) initiated against corporate debtor and corporate guarantor. Financial creditor granted loan to corporate debtor, secured...

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...

Admission of Section 7 Application of the Financial Creditor - Corporate Debtor / Guarantor failed to fulfil obligations - The tribunal noted the specifics of the...

The sanction letter clearly mentioned that all existing securities, including the guarantees dated 22.08.2015 and 18.11.2016, would continue to cover the existing...

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...

Financial Creditors - The disbursal was made by CDR Lenders to the Corporate Debtor and the Appellant(s) were Personal Guarantors/ Corporate Guarantors to guarantee the...

Initiation of CIRP - It is clear that Respondent ‘Eastern Embroidery Collections Private Limited’ was the Corporate Guarantor of the Principal Borrower ‘Eastern...

Rejection of the simultaneous claim by the Resolution Professional of the Corporate Debtor - Claim filed by the Applicant with respect to the corporate guarantee given...

The HC held that as per Sections 31 and 238 of the IBC, the approved Resolution Plan is binding on the Corporate Debtor, its creditors, guarantors, and stakeholders,...

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

The NCLAT dismissed the appeal and upheld the NCLT order, ruling that u/s 14 of the IBC, 2016, a security deposit lying with a third party cannot be adjusted against...

Recovery of electricity dues of the Company - personal liability of the Directors of the Defaulter Company/Corporate debtor which went into insolvency - it is clear that...

Quick Updates: