https://www.taxtmi.com/caselaws?id=791076 A limited equity-infusion or cost-overrun undertaking does not, by itself, create liability to repay the principal borrower's loan, and a corporate guarantor's default arises only on invocation of the guarantee and non-payment thereafter, not on the borrower's earlier NPA date. The later guarantee deed was treated as releasing the corporate debtor from its earlier guarantee obligations, subject only to limited contingent obligations. On that basis, a Section 7 petition based on a default alleged to have arisen during the Section 10A suspension period could not be maintained. The document also notes that an admission order was unsustainable where a connected Section 7 matter on the same recall notice had been rejected by the same Bench on the same facts. en-us Mon, 04 May 2026 00:00:00 +0530 Wed, 06 May 2026 08:32:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791076 A limited equity-infusion or cost-overrun undertaking does not, by itself, create liability to repay the principal borrower's loan, and a corporate guarantor's default arises only on invocation of the guarantee and non-payment thereafter, not on the borrower's earlier NPA date. The later guarantee deed was treated as releasing the corporate debtor from its earlier guarantee obligations, subject only to limited contingent obligations. On that basis, a Section 7 petition based on a default alleged to have arisen during the Section 10A suspension period could not be maintained. The document also notes that an admission order was unsustainable where a connected Section 7 matter on the same recall notice had been rejected by the same Bench on the same facts. Case-Laws IBC Mon, 04 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791076