Corporate guarantee default date under Section 10A was tied to invocation, barring the insolvency application.

A Section 7 insolvency application against a corporate guarantor was treated as barred by Section 10A where the relevant default arose on invocation of the guarantee, not on the principal borrower's earlier default. The notice invoking the corporate guarantee was issued on 16.10.2020 and required payment within seven days, so the default date for the guarantor fell within the protected period. On that basis, the Section 7 application could not be sustained, and the rejection of the application as time-barred under Section 10A was upheld.

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Issues: Whether the Section 7 application was barred by Section 10A of the Insolvency and Bankruptcy Code on the basis that the default, in relation to the corporate guarantor, arose only upon invocation of the guarantee during the protected period.

Analysis: The notice invoking the corporate guarantee was issued on 16.10.2020 and demanded payment within seven days. The default relevant to the corporate guarantor was therefore treated as occurring on the date of invocation of the guarantee, not the earlier default of the principal borrower. Since that invocation fell within the Section 10A period, the application could not be sustained.

Conclusion: The challenge failed and the rejection of the Section 7 application as barred by Section 10A was upheld.

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