https://www.taxtmi.com/highlights?id=95636 The appellate tribunal rejected the corporate guarantor's challenge to admission of a Section 7 application. It held that the earlier guarantee deeds remained operative because subsequent sanction letters expressly continued existing securities; the later guarantee did not novate or extinguish prior guarantee obligations, and invocation validly triggered liability, resulting in rejection of the novation defence. It further held that a consortium member could independently initiate Section 7 proceedings upon the borrower's account becoming NPA, so maintainability was upheld. Objections on insufficient stamping were treated as curable and belated, especially where stamp duty exemptions/undertakings existed, and could not defeat undisputed debt and default; the admission order was affirmed and the appeal dismissed - NCLAT en-us Fri, 02 Jan 2026 07:51:52 +0530 Fri, 02 Jan 2026 07:51:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=95636 The appellate tribunal rejected the corporate guarantor's challenge to admission of a Section 7 application. It held that the earlier guarantee deeds remained operative because subsequent sanction letters expressly continued existing securities; the later guarantee did not novate or extinguish prior guarantee obligations, and invocation validly triggered liability, resulting in rejection of the novation defence. It further held that a consortium member could independently initiate Section 7 proceedings upon the borrower's account becoming NPA, so maintainability was upheld. Objections on insufficient stamping were treated as curable and belated, especially where stamp duty exemptions/undertakings existed, and could not defeat undisputed debt and default; the admission order was affirmed and the appeal dismissed - NCLAT Highlights IBC Fri, 02 Jan 2026 07:51:52 +0530 https://www.taxtmi.com/highlights?id=95636