https://www.taxtmi.com/caselaws?id=429455 A letter of comfort will not, by itself, create a contract of guarantee unless the essential ingredients under Section 126 of the Indian Contract Act are satisfied and the document is validly authorised. Here, the respondent challenged its treatment as a corporate guarantor on the basis that the document was undated, lacked seal and proper board approval, and was not shown to comply with Sections 179(3)(f) and 185 of the Companies Act, 2013. The tribunal treated those defects as fatal to the creditor's case and noted that a letter of comfort does not automatically establish a legal guarantee obligation. The Section 7 insolvency petition was therefore held not maintainable against the respondent. en-us Fri, 21 Oct 2022 00:00:00 +0530 Sat, 29 Oct 2022 13:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=429455 A letter of comfort will not, by itself, create a contract of guarantee unless the essential ingredients under Section 126 of the Indian Contract Act are satisfied and the document is validly authorised. Here, the respondent challenged its treatment as a corporate guarantor on the basis that the document was undated, lacked seal and proper board approval, and was not shown to comply with Sections 179(3)(f) and 185 of the Companies Act, 2013. The tribunal treated those defects as fatal to the creditor's case and noted that a letter of comfort does not automatically establish a legal guarantee obligation. The Section 7 insolvency petition was therefore held not maintainable against the respondent. Case-Laws Insolvency and Bankruptcy Fri, 21 Oct 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=429455