Can you proceed against the Corporate Guarantor before proceeding against the Corporate Debtor? NCLAT answers in this JudgmentJanuary 10 2019
An NCLAT Bench comprising Chairperson Justice SJ Mukhopadhyaya, Member (Judicial) Justice A.I.S. Cheema and Member (Technical) Balvinder Singh has held that Corporate Insolvency Resolution Process (CIRP) can be triggered against the corporate guarantor even if the corporate debtor is not in CIRP by itself.
“Without initiating any ‘Corporate Insolvency Resolution Process’ against the ‘Principal Borrower’, it is always open to the ‘Financial Creditor’ to initiate ‘Corporate Insolvency Resolution Process’ under Section 7 against the ‘Corporate Guarantors’, as . . .
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