https://www.taxtmi.com/caselaws?id=756188 SC dismissed appeal regarding second IBC application against corporate debtor for same debt. Financial creditor had granted Rs.100 crores loan to corporate debtor, secured by corporate guarantee from holding company ACIL. After default, creditor invoked guarantee and filed Section 7 application against ACIL. CIRP completed with resolution plan providing creditor Rs.38.87 crores against Rs.241.27 crores claim. SC held liability of guarantor and principal debtor is co-extensive under Contract Act. CIRP discharge of guarantor doesn't extinguish corporate debtor's remaining liability. Subrogation under Section 140 limited to amount actually recovered from guarantor. NCLAT decision upheld. en-us Tue, 23 Jul 2024 00:00:00 +0530 Mon, 29 Jul 2024 11:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756188 SC dismissed appeal regarding second IBC application against corporate debtor for same debt. Financial creditor had granted Rs.100 crores loan to corporate debtor, secured by corporate guarantee from holding company ACIL. After default, creditor invoked guarantee and filed Section 7 application against ACIL. CIRP completed with resolution plan providing creditor Rs.38.87 crores against Rs.241.27 crores claim. SC held liability of guarantor and principal debtor is co-extensive under Contract Act. CIRP discharge of guarantor doesn't extinguish corporate debtor's remaining liability. Subrogation under Section 140 limited to amount actually recovered from guarantor. NCLAT decision upheld. Case-Laws IBC Tue, 23 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756188