Civil Appeal No. 8527 of 2022 |Supreme Court of India |
Introduction
In a landmark ruling delivered on April 28, 2026, the Supreme Court of India in State Bank of India & Ors. v. Doha Bank Q.P.S.C. & Anr. (2026 INSC 423) settled a significant question in Indian insolvency law: corporate guarantees executed by a corporate debtor constitute “financial debt” under Section 5(8) of the Insolvency and Bankruptcy Code, 2016 (IBC), and the guarantor’s lenders are entitled to recognition as “financial creditors” in the Corporate Insolvency Resolution Process (CIRP).
The judgment, authored by Hon,ble Justice Alok Aradhe Hon,ble Justice Pamidighantam Sri Narasimha concurring), overturned concurrent orders of the National Company Law…