The National Company Law Tribunal (NCLT) Kolkata Bench has admitted a Insolvency application filed by Bank of India against Bahubali Realbuild Private Limited holding that simultaneous insolvency proceedings can continue against both the principal borrower and the corporate guarantor under the Insolvency and Bankruptcy Code 2016 (IBC).
The petition was filed by Bank of India in relation to credit facilities extended to Sunbeam Dealers Private Limited the principal borrower. The bank had initially sanctioned a cash credit facility of ₹2.5 crore in September 2014 which was subsequently enhanced to ₹10 crore in September 2016.
The Bahubali Realbuild Private Limited had executed a deed of guarantee in favour of…