https://www.taxtmi.com/caselaws?id=465619 The NCLT held that an assignee of a financial debt qualifies as a "financial creditor" under s.5(7) IBC, since assignment is a statutorily recognised mode of transfer; objections to enforceability/registration of the assignment agreement involve civil adjudication and cannot be examined in summary proceedings under s.7, so the challenge was rejected. It further held that the corporate debtor's liability as guarantor was not discharged merely because CIRP was initiated against the principal borrower, absent any contractual provision extinguishing the surety's liability, so liability subsisted. Applying the SC's limitation extension orders, the s.7 application filed on 25.09.2021 was within time; default and the s.4 threshold were established, and the petition was admitted with moratorium. en-us Wed, 24 Jan 2024 00:00:00 +0530 Fri, 09 Jan 2026 11:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465619 The NCLT held that an assignee of a financial debt qualifies as a "financial creditor" under s.5(7) IBC, since assignment is a statutorily recognised mode of transfer; objections to enforceability/registration of the assignment agreement involve civil adjudication and cannot be examined in summary proceedings under s.7, so the challenge was rejected. It further held that the corporate debtor's liability as guarantor was not discharged merely because CIRP was initiated against the principal borrower, absent any contractual provision extinguishing the surety's liability, so liability subsisted. Applying the SC's limitation extension orders, the s.7 application filed on 25.09.2021 was within time; default and the s.4 threshold were established, and the petition was admitted with moratorium. Case-Laws IBC Wed, 24 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465619