https://www.taxtmi.com/caselaws?id=751382 The NCLAT dismissed an appeal challenging rejection of a voluntary liquidation application under Section 59 of IBC. The appellant argued that since corporate guarantees had not been invoked by financial creditors and no claims were filed before the liquidator, there was no existing debt. The NCLAT held that non-invocation of guarantee does not absolve the corporate guarantor from debt liability. The court emphasized that guarantee liability is coextensive with lenders, who retain liberty to require performance of guarantor obligations. With 23 charges still showing against the company and corporate guarantees issued, the adjudicating authority correctly determined this was not an appropriate case for voluntary liquidation. en-us Mon, 01 Apr 2024 00:00:00 +0530 Tue, 16 Apr 2024 06:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751382 The NCLAT dismissed an appeal challenging rejection of a voluntary liquidation application under Section 59 of IBC. The appellant argued that since corporate guarantees had not been invoked by financial creditors and no claims were filed before the liquidator, there was no existing debt. The NCLAT held that non-invocation of guarantee does not absolve the corporate guarantor from debt liability. The court emphasized that guarantee liability is coextensive with lenders, who retain liberty to require performance of guarantor obligations. With 23 charges still showing against the company and corporate guarantees issued, the adjudicating authority correctly determined this was not an appropriate case for voluntary liquidation. Case-Laws Insolvency and Bankruptcy Mon, 01 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751382