https://www.taxtmi.com/caselaws?id=446924 NCLAT Principal Bench dismissed an appeal challenging the Resolution Professional's rejection of a financial creditor's claim. The appellant argued that an Agreement dated 29.03.2019 constituted a guarantee under Section 126 of the Indian Contract Act, 1872, making the corporate debtor liable for secured obligations. NCLAT held that the Agreement was executed merely to create additional security as per the Debenture Trust Deed, not as a guarantee. The document's nomenclature was not decisive; its true nature showed it was for additional security purposes only. The Resolution Professional correctly rejected the claim as it exceeded the scope of available security. en-us Wed, 13 Dec 2023 00:00:00 +0530 Thu, 14 Dec 2023 12:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446924 NCLAT Principal Bench dismissed an appeal challenging the Resolution Professional's rejection of a financial creditor's claim. The appellant argued that an Agreement dated 29.03.2019 constituted a guarantee under Section 126 of the Indian Contract Act, 1872, making the corporate debtor liable for secured obligations. NCLAT held that the Agreement was executed merely to create additional security as per the Debenture Trust Deed, not as a guarantee. The document's nomenclature was not decisive; its true nature showed it was for additional security purposes only. The Resolution Professional correctly rejected the claim as it exceeded the scope of available security. Case-Laws Insolvency and Bankruptcy Wed, 13 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446924