The Supreme Court of India, while deciding a batch of appeals involving ICICI Bank and SBI, held that simultaneous Corporate Insolvency Resolution Process (CIRP) proceedings against a principal debtor and its corporate guarantor are maintainable under the Insolvency and BankruptcyCode (IBC), 2016.
The appeals arose from conflicting orders by the NCLAT and NCLT regarding the maintainability of parallel CIRP applications based on the same debt. While some tribunals had rejected such applications relying on Vishnu Kumar Agarwal, which held that a second application could not be admitted once the first was admitted against one entity others had permitted them, pointing the co-extensive liability of the surety under the…