New Delhi, Feb 26: 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 wrote in the opening of the 47-page judgment.
“Thus, whilst approving that the IBC is not a recovery…