“The IBC Permits Separate or Simultaneous Proceedings” – In a significant ruling clarifying the insolvency jurisprudence under the Insolvency and Bankruptcy Code, 2016 (IBC), the Supreme Court settled the controversy surrounding the maintainability of simultaneous Corporate Insolvency Resolution Process (CIRP) proceedings against a principal borrower and its corporate guarantor.
A Bench comprising Justice Dipankar Datta and Justice Augustine George Masih held that the IBC permits initiation of separate or simultaneous insolvency proceedings against both the corporate debtor and its guarantor. The Court set aside orders that had barred such parallel proceedings on the basis of the earlier NCLAT…