https://www.taxtmi.com/caselaws?id=755168 The NCLAT Principal Bench dismissed an appeal challenging a Section 7 application admission against a corporate guarantor. The appellant argued that approval of a resolution plan for the principal borrower discharged the guarantee liability. The NCLAT relied on SC precedents in Lalit Kumar Jain and Maitreya Doshi cases, holding that resolution plan approval does not discharge guarantors. Despite the principal borrower's debt exceeding Rs.218 crores and minimal upfront cash payment of Rs.2.06 crores in the resolution plan, the guarantee remained enforceable. The NCLAT found no infirmity in the Adjudicating Authority's admission order and dismissed the appeal. en-us Tue, 02 Jul 2024 00:00:00 +0530 Sat, 06 Jul 2024 12:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755168 The NCLAT Principal Bench dismissed an appeal challenging a Section 7 application admission against a corporate guarantor. The appellant argued that approval of a resolution plan for the principal borrower discharged the guarantee liability. The NCLAT relied on SC precedents in Lalit Kumar Jain and Maitreya Doshi cases, holding that resolution plan approval does not discharge guarantors. Despite the principal borrower's debt exceeding Rs.218 crores and minimal upfront cash payment of Rs.2.06 crores in the resolution plan, the guarantee remained enforceable. The NCLAT found no infirmity in the Adjudicating Authority's admission order and dismissed the appeal. Case-Laws Insolvency and Bankruptcy Tue, 02 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755168