https://www.taxtmi.com/caselaws?id=438010 An asset reconstruction company that acquires financial assets under section 5 of the SARFAESI Act is treated as the lender by statutory deeming fiction, with all corresponding rights vested in it; lack of registration of the assignment does not, by itself, negate that consequence, so a section 7 IBC application may be maintained. A separate section 7 proceeding against a corporate guarantor for the same debt is also maintainable after admission against the principal borrower, because the guarantor's liability is coextensive with the borrower's under section 128 of the Contract Act. The admitted debt and default remained undisputed, and the insolvency admission was upheld. en-us Tue, 16 May 2023 00:00:00 +0530 Fri, 19 May 2023 11:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=438010 An asset reconstruction company that acquires financial assets under section 5 of the SARFAESI Act is treated as the lender by statutory deeming fiction, with all corresponding rights vested in it; lack of registration of the assignment does not, by itself, negate that consequence, so a section 7 IBC application may be maintained. A separate section 7 proceeding against a corporate guarantor for the same debt is also maintainable after admission against the principal borrower, because the guarantor's liability is coextensive with the borrower's under section 128 of the Contract Act. The admitted debt and default remained undisputed, and the insolvency admission was upheld. Case-Laws Insolvency and Bankruptcy Tue, 16 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=438010