https://www.taxtmi.com/caselaws?id=400299 Proceedings under SARFAESI may be initiated or continued against a personal guarantor even while insolvency proceedings are pending against the principal borrower. The guarantor's liability remains co-extensive with that of the principal debtor under Section 128 of the Contract Act, and the moratorium under Section 14 of the Insolvency and Bankruptcy Code applies to the corporate debtor, not the surety. An approved resolution plan under Section 31 does not bar independent recovery action against the guarantor. The Delhi High Court therefore held that the bank could proceed against the guarantor despite the borrower's insolvency proceedings. en-us Mon, 02 Nov 2020 00:00:00 +0530 Tue, 02 Mar 2021 14:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400299 Proceedings under SARFAESI may be initiated or continued against a personal guarantor even while insolvency proceedings are pending against the principal borrower. The guarantor's liability remains co-extensive with that of the principal debtor under Section 128 of the Contract Act, and the moratorium under Section 14 of the Insolvency and Bankruptcy Code applies to the corporate debtor, not the surety. An approved resolution plan under Section 31 does not bar independent recovery action against the guarantor. The Delhi High Court therefore held that the bank could proceed against the guarantor despite the borrower's insolvency proceedings. Case-Laws Insolvency and Bankruptcy Mon, 02 Nov 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400299