https://www.taxtmi.com/caselaws?id=751645 A financial creditor may maintain a section 7 insolvency application against a corporate guarantor even where CIRP has already been initiated against the principal borrower for the same debt and default. The guarantor's liability is co-extensive with that of the principal borrower, and default by the borrower triggers the guarantor's liability unless the guarantee contract provides otherwise. At the admission stage, the adjudicating authority examines only the existence of debt and default, not the merits of the recovery dispute or quantum objections. The simultaneous proceeding against the corporate guarantor was therefore maintainable, and admission of the application was upheld. en-us Thu, 18 Apr 2024 00:00:00 +0530 Fri, 19 Apr 2024 14:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751645 A financial creditor may maintain a section 7 insolvency application against a corporate guarantor even where CIRP has already been initiated against the principal borrower for the same debt and default. The guarantor's liability is co-extensive with that of the principal borrower, and default by the borrower triggers the guarantor's liability unless the guarantee contract provides otherwise. At the admission stage, the adjudicating authority examines only the existence of debt and default, not the merits of the recovery dispute or quantum objections. The simultaneous proceeding against the corporate guarantor was therefore maintainable, and admission of the application was upheld. Case-Laws Insolvency and Bankruptcy Thu, 18 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751645