https://www.taxtmi.com/caselaws?id=437055 In a Section 7 insolvency proceeding against a corporate guarantor, limitation runs from the guarantor's own default under the guarantee terms, not automatically from the principal borrower's earlier default. Where the guarantee requires a demand before enforcement, the cause of action against the guarantor arises on that demand. Applying this principle, the demand notice issued to the guarantor was treated as the operative trigger, and the Section 7 application filed within three years was held not barred by limitation. The admission of the insolvency petition was therefore sustained, and the challenge based on limitation and admission failed. en-us Wed, 26 Apr 2023 00:00:00 +0530 Wed, 26 Apr 2023 18:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=437055 In a Section 7 insolvency proceeding against a corporate guarantor, limitation runs from the guarantor's own default under the guarantee terms, not automatically from the principal borrower's earlier default. Where the guarantee requires a demand before enforcement, the cause of action against the guarantor arises on that demand. Applying this principle, the demand notice issued to the guarantor was treated as the operative trigger, and the Section 7 application filed within three years was held not barred by limitation. The admission of the insolvency petition was therefore sustained, and the challenge based on limitation and admission failed. Case-Laws Insolvency and Bankruptcy Wed, 26 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=437055