https://www.taxtmi.com/caselaws?id=799984 One-time settlement by a personal guarantor with the sole financial creditor does not terminate or alter liquidation absent a recognised statutory route, and does not make the guarantor a financial creditor without debt assignment or substitution. After the financial creditor's claim is satisfied, forfeited earnest money deposit forms part of the liquidation estate and must be restored for statutory distribution. Approved remuneration for an erstwhile liquidator's claim-processing, auction and related work may be paid from the estate. An admitted operational creditor participates in the statutory waterfall, while the guarantor, including as asset purchaser or promoter, has no priority and may receive only any surplus after statutory claims. en-us Mon, 28 Sep 2026 00:00:00 +0530 Wed, 30 Sep 2026 08:41:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=799984 One-time settlement by a personal guarantor with the sole financial creditor does not terminate or alter liquidation absent a recognised statutory route, and does not make the guarantor a financial creditor without debt assignment or substitution. After the financial creditor's claim is satisfied, forfeited earnest money deposit forms part of the liquidation estate and must be restored for statutory distribution. Approved remuneration for an erstwhile liquidator's claim-processing, auction and related work may be paid from the estate. An admitted operational creditor participates in the statutory waterfall, while the guarantor, including as asset purchaser or promoter, has no priority and may receive only any surplus after statutory claims. Case-Laws IBC Mon, 28 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=799984