https://www.taxtmi.com/caselaws?id=772576 A consent decree that merely records a general assurance to pay dues and keep properties unencumbered is not, by itself, a valid contract of guarantee under section 126 of the Indian Contract Act unless it shows a clear secondary liability as surety; the decree here was treated as a settlement and joint payment obligation. Insolvency against a personal guarantor requires invocation of a valid guarantee in accordance with its terms, and no such invocation was proved. An application under section 95 of the Insolvency and Bankruptcy Code was also held not maintainable where the consent decree had been obtained during CIRP and moratorium, without disclosure, and was found to be vitiated by fraud and collusion. en-us Tue, 13 May 2025 00:00:00 +0530 Sat, 07 Jun 2025 12:38:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772576 A consent decree that merely records a general assurance to pay dues and keep properties unencumbered is not, by itself, a valid contract of guarantee under section 126 of the Indian Contract Act unless it shows a clear secondary liability as surety; the decree here was treated as a settlement and joint payment obligation. Insolvency against a personal guarantor requires invocation of a valid guarantee in accordance with its terms, and no such invocation was proved. An application under section 95 of the Insolvency and Bankruptcy Code was also held not maintainable where the consent decree had been obtained during CIRP and moratorium, without disclosure, and was found to be vitiated by fraud and collusion. Case-Laws IBC Tue, 13 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772576