Orders Under Insolvency And Bankruptcy Code, 2016 WRT Corporate Persons

ORDERS UNDER INSOLVENCY AND BANKRUPTCY CODE, 2016

1. Initiation of Application under Section 7 of I&B Code would prevail against Guarantor which is a Corporate Person through Principal Borrower who is not a Corporate Person

Laxmi Pat Surana Vs. Union Bank of India & Anr. (Supreme Court) [Civil Appeal No. 2734 of 2020]

The Hon'ble Supreme Court ("SC") vide its judgment dated March 26, 2021, upheld the findings of the National Company Law Tribunal ("NCLT") dated December 12, 2019, and National Company Law Appellant Tribunal ("NCLAT") dated March 19, 2020, observing that the liability of the guarantor is co-extensible with the defaulting principal borrower even though such principal borrower is outside the purview of the corporate person defined under I&B Code. Further, the SC also affirmed the view of NCLT & NCLAT that a fresh period of limitation is required to be computed from the date of a written acknowledgment of the liability by the principal borrower and