https://www.taxtmi.com/caselaws?id=751296 NCLAT Principal Bench dismissed an appeal challenging admission of a Section 7 petition under IBC against a corporate guarantor. The appellant contested the petition's maintainability, alleging forged guarantee deeds and improper authorization. NCLAT held that the petition was filed by a duly authorized person with valid power of attorney backed by board resolution. Applying the doctrine of indoor management, the tribunal found the financial creditor protected against internal irregularities and not required to scrutinize company's internal procedures. The court rejected forgery allegations, noting no judicial cognizance of fabrication. NCLAT clarified that Section 127 of Indian Contract Act permits past consideration for guarantee agreements, and corporate guarantor's liability arises simultaneously with principal borrower's default. The admission into CIRP was upheld as legally sound. en-us Tue, 09 Apr 2024 00:00:00 +0530 Fri, 12 Apr 2024 18:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751296 NCLAT Principal Bench dismissed an appeal challenging admission of a Section 7 petition under IBC against a corporate guarantor. The appellant contested the petition's maintainability, alleging forged guarantee deeds and improper authorization. NCLAT held that the petition was filed by a duly authorized person with valid power of attorney backed by board resolution. Applying the doctrine of indoor management, the tribunal found the financial creditor protected against internal irregularities and not required to scrutinize company's internal procedures. The court rejected forgery allegations, noting no judicial cognizance of fabrication. NCLAT clarified that Section 127 of Indian Contract Act permits past consideration for guarantee agreements, and corporate guarantor's liability arises simultaneously with principal borrower's default. The admission into CIRP was upheld as legally sound. Case-Laws Insolvency and Bankruptcy Tue, 09 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751296