https://www.taxtmi.com/caselaws?id=357199 A corporate guarantee cannot be rejected merely for insufficient stamping where execution is admitted and the debt and default are otherwise established. The Tribunal held that insolvency moratorium against the principal borrower does not bar a creditor from proceeding against corporate guarantors, and sections 140 and 141 of the Indian Contract Act do not prevent such action because subrogation arises only after payment. A possible resolution plan or liquidation recovery from the borrower also does not suspend the creditor's claim against the guarantors. The petitions were admitted, moratorium was declared against each corporate debtor, and an Interim Resolution Professional was appointed for CIRP. en-us Thu, 01 Feb 2018 00:00:00 +0530 Mon, 19 Mar 2018 07:28:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=357199 A corporate guarantee cannot be rejected merely for insufficient stamping where execution is admitted and the debt and default are otherwise established. The Tribunal held that insolvency moratorium against the principal borrower does not bar a creditor from proceeding against corporate guarantors, and sections 140 and 141 of the Indian Contract Act do not prevent such action because subrogation arises only after payment. A possible resolution plan or liquidation recovery from the borrower also does not suspend the creditor's claim against the guarantors. The petitions were admitted, moratorium was declared against each corporate debtor, and an Interim Resolution Professional was appointed for CIRP. Case-Laws Insolvency and Bankruptcy Thu, 01 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=357199