https://www.taxtmi.com/highlights?id=95799 Approval of a corporate debtor's resolution plan was held not to ipso facto discharge a third-party security provider/surety from contractual liability. The plan expressly preserved financial creditors' rights against third parties, including existing promoters/security providers, in respect of the "unsustainable debt," while stipulating that any claim by such third parties against the corporate debtor or resolution applicant arising from invocation/enforcement of the security would be settled at NIL value. On this construction, the plan did not extinguish the entire debt so as to bar creditor claims against the third-party security provider. The appeal was dismissed. - SC en-us Wed, 07 Jan 2026 08:27:02 +0530 Wed, 07 Jan 2026 08:27:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=95799 Approval of a corporate debtor's resolution plan was held not to ipso facto discharge a third-party security provider/surety from contractual liability. The plan expressly preserved financial creditors' rights against third parties, including existing promoters/security providers, in respect of the "unsustainable debt," while stipulating that any claim by such third parties against the corporate debtor or resolution applicant arising from invocation/enforcement of the security would be settled at NIL value. On this construction, the plan did not extinguish the entire debt so as to bar creditor claims against the third-party security provider. The appeal was dismissed. - SC Highlights IBC Wed, 07 Jan 2026 08:27:02 +0530 https://www.taxtmi.com/highlights?id=95799