https://www.taxtmi.com/article/detailed?id=10716 Where contractual documents treat two corporate entities as borrowers, insolvency proceedings may be initiated against both as corporate debtors even if disbursement was made to only one; the defining criterion is whether the entity legally owes the debt. Pledge, guarantee and indemnity are distinct: a pledge is bailment of security, a guarantee is secondary liability, and indemnity is primary promise to compensate. A creditor cannot secure double recovery on the same claim; partial recovery from one co-borrower reduces the balance recoverable from the other. en-us Mon, 26 Sep 2022 08:32:07 +0530 Mon, 26 Sep 2022 08:32:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=10716 Where contractual documents treat two corporate entities as borrowers, insolvency proceedings may be initiated against both as corporate debtors even if disbursement was made to only one; the defining criterion is whether the entity legally owes the debt. Pledge, guarantee and indemnity are distinct: a pledge is bailment of security, a guarantee is secondary liability, and indemnity is primary promise to compensate. A creditor cannot secure double recovery on the same claim; partial recovery from one co-borrower reduces the balance recoverable from the other. Articles Corporate Laws / IBC / SEBI Mon, 26 Sep 2022 08:32:07 +0530 https://www.taxtmi.com/article/detailed?id=10716