Insolvency & Banking Code
Initiating Corporate Insolvency against Guarantors
without involving the Principal Borrower
by SANDEEP SURI Advocate
20 January, 2019
Article deals with Whether the Corporate Insolvency Process can be initiated against a Corporate Guarantor without initiating process against the Principal Borrower who is neither a ‘Corporate Debtor’ nor ‘Corporate Person’. The NCLATs view on whether the Corporate Insolvency Resolution Process can be initiated against two ‘Corporate Guarantors’ simultaneously for the same set of debt and default has also been addressed.