Supreme Court allows simultaneous insolvency proceedings against debtors and guarantors under IBC. No bar to recover dues.
New Delhi, Feb 26 (PTI) The Supreme Court on Thursday said that simultaneous Corporate Insolvency Resolution Process (CIRP) proceedings are maintainable against both a principal debtor and its corporate guarantor for the same debt.
A bench comprising justices Dipankar Datta and Augustine George Masih held that there is no statutory bar under the Insolvency and Bankruptcy Code (IBC) preventing a financial creditor from initiating parallel actions to recover its dues.
“The Judge is not to innovate at pleasure. He is not a knight errant roaming at will in pursuit of his own ideal of beauty or of goodness,” Justice Datta…