https://www.taxtmi.com/caselaws?id=310884 NCLT Mumbai held that insolvency application against co-obligor can be admitted even when CIRP against principal borrower is already commenced. The tribunal ruled that surety discharge under Section 134 of Indian Contract Act, 1872 occurs only upon principal borrower's discharge through resolution plan approval, not merely upon CIRP commencement. Since no resolution plan was approved for principal borrower, co-obligor remained liable. Citing precedents, tribunal noted moratorium applies only to debtor's assets, not guarantors'. Application was admitted and CIRP commenced from order date. en-us Tue, 25 Sep 2018 00:00:00 +0530 Thu, 23 Nov 2023 19:53:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310884 NCLT Mumbai held that insolvency application against co-obligor can be admitted even when CIRP against principal borrower is already commenced. The tribunal ruled that surety discharge under Section 134 of Indian Contract Act, 1872 occurs only upon principal borrower's discharge through resolution plan approval, not merely upon CIRP commencement. Since no resolution plan was approved for principal borrower, co-obligor remained liable. Citing precedents, tribunal noted moratorium applies only to debtor's assets, not guarantors'. Application was admitted and CIRP commenced from order date. Case-Laws Insolvency and Bankruptcy Tue, 25 Sep 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310884