Guarantor's Independent Liability Allows Section 7 Application; Creditor Cannot Sue Debtor and Claim in Guarantor Insolvency.

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....Initiation of CIRP - if the ‘Contract of Guarantee’ itself mentions that the liability of a Guarantor will be independent and separate than that of ‘Principal Debtor’s liability, then an application against the Guarantor as per Section 7 is maintainable. The only rider will be that a Creditor is not permitted to do the same, sue the principal Debtor and claim in the Guarantor’s Insolvency at the same time. - AT....