IBC| Creditors Can Initiate CIRP Against Both Borrower And Guarantor For Same Debt: Supreme Court

The Supreme Court has reaffirmed that a financial creditor is legally entitled to maintain simultaneous insolvency proceedings against a principal borrower and its corporate guarantor for the same debt, under the Insolvency and Bankruptcy Code, 2016 (IBC). The Bench said that while a creditor is prohibited from “double enrichment” meaning they cannot recover more than…