https://www.taxtmi.com/caselaws?id=435512 The Insolvency and Bankruptcy Code, 2016 prevails over inconsistent laws, and the Section 14 moratorium protects the corporate debtor and its assets, not personal guarantors. Approval of a resolution plan under Section 31 does not automatically discharge liability arising from an independent contract of guarantee, because such liability remains co-extensive with that of the principal debtor subject to the guarantee terms. Liquidation and distribution under Sections 33 and 53 also do not, by themselves, extinguish a separate personal liability undertaken by a director. Recovery proceedings against the directors were therefore treated as sustainable despite the company's insolvency resolution. en-us Thu, 12 Jan 2023 00:00:00 +0530 Tue, 21 Mar 2023 13:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=435512 The Insolvency and Bankruptcy Code, 2016 prevails over inconsistent laws, and the Section 14 moratorium protects the corporate debtor and its assets, not personal guarantors. Approval of a resolution plan under Section 31 does not automatically discharge liability arising from an independent contract of guarantee, because such liability remains co-extensive with that of the principal debtor subject to the guarantee terms. Liquidation and distribution under Sections 33 and 53 also do not, by themselves, extinguish a separate personal liability undertaken by a director. Recovery proceedings against the directors were therefore treated as sustainable despite the company's insolvency resolution. Case-Laws Companies Law Thu, 12 Jan 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=435512