Simultaneous CIRP proceedings against debtor and guarantor permitted; election not required and safeguards prevent double recovery.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Simultaneous insolvency proceedings may be initiated and admitted against a corporate debtor and its guarantor where statutory conditions for CIRP are met; the guarantor's liability being co-extensive with the principal supports parallel proceedings, subject to independent examination by the adjudicating authority. Creditors are not compelled to elect or apportion claims between debtor and guarantor because the doctrine of election does not apply absent mutually inconsistent remedies or express statutory mandate. Apprehensions of double enrichment do not bar parallel CIRP proceedings given obligations to update claims and the resolution professional's duty to assess and revise claims, and the adjudicating authority retains reasonable discretion on admission.....