The Supreme Court of India has ruled that simultaneous proceedings for the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC) can be maintained against both the principal debtor and its corporate guarantor. A bench comprising Justice Dipankar Datta and Justice Augustine George Masih held that a creditor is not required to elect its claims and that the statutory framework of the IBC, coupled with the co-extensive liability of a guarantor, permits concurrent or separate proceedings.
Background of the Case
The judgment was delivered in a batch of civil appeals, with the lead case being ICICI Bank Limited vs. Era Infrastructure (India) Limited. The common question of law across these…