https://www.taxtmi.com/news?id=72566 Liabilities arising from corporate guarantees executed by the corporate debtor constitute financial debt under the Insolvency and Bankruptcy Code where the guarantee secures money borrowed against interest. The guarantor's liability is co-extensive with that of the principal borrower, and a consortium of banks relying on such guarantees is entitled to be recognised as financial creditors in the insolvency process. Improper stamping does not render the instrument void, and non-disclosure in financial statements does not extinguish the lender's substantive right to claim the debt. en-us Tue, 28 Apr 2026 19:16:04 +0530 Tue, 28 Apr 2026 19:16:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=72566 Liabilities arising from corporate guarantees executed by the corporate debtor constitute financial debt under the Insolvency and Bankruptcy Code where the guarantee secures money borrowed against interest. The guarantor's liability is co-extensive with that of the principal borrower, and a consortium of banks relying on such guarantees is entitled to be recognised as financial creditors in the insolvency process. Improper stamping does not render the instrument void, and non-disclosure in financial statements does not extinguish the lender's substantive right to claim the debt. News - Tue, 28 Apr 2026 19:16:04 +0530 https://www.taxtmi.com/news?id=72566