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Insolvency and BankruptcyApril 13, 2024Case LawsAT
Admission of petition under Section 7 of the IBC - initiation of CIRP - Corporate Guarantor - The Tribunal dismissed the claims of forgery, noting the lack of substantial evidence or any legal finding to the contrary. They emphasized the need for allegations of forgery to be established in a competent court, which had not occurred in this instance. - The Tribunal clarified that even past consideration (actions or agreements made before the execution of the guarantee) is sufficient under the law to validate a contract of guarantee. This addressed the concern about the timing of the deeds' execution relative to the disbursement of loans. - Allegations regarding the forged mortgage deeds were similarly set aside.
Admission of petition under Section 7 of the IBC - initiation of CIRP - Corporate Guarantor - The Tribunal dismissed the claims of forgery, noting the lack of substantial evidence or any legal finding to the contrary. They emphasized the need for allegations of forgery to be established in a competent court, which had not occurred in this instance. - The Tribunal clarified that even past consideration (actions or agreements made before the execution of the guarantee) is sufficient under the law to validate a contract of guarantee. This addressed the concern about the timing of the deeds' execution relative to the disbursement of loans. - Allegations regarding the forged mortgage deeds were similarly set aside.
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