The National Company Law Appellate Tribunal (NCLAT), in its recent ruling in the case of Vishnu Kumar Agarwal v Piramal Enterprises Ltd, while examining the validity of an application made under section 7 of the Insolvency and Bankruptcy Code, 2016 (code), against corporate guarantors, held that: (1) there is no bar on filing two simultaneous applications under section 7 against the principal borrower as well as the corporate guarantors and against both guarantors; and (2) it is not necessary to initiate a corporate insolvency resolution process (CIRP) against the principal borrower before initiating a CIRP against the corporate guarantors.
Founder and managing partner
Aureus Law Partners
The NCLAT was hearing the appeal preferred by one of the shareholders against the order of the , New Delhi, initiating CIRP against the corporate guarantors.
The CIRP proceedings were initiated as the principal debtor, being a society, was not amenable to the insolvency proceedings under the code.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章，欢迎成为我们的订阅会员成为我们的订阅会员。
Abhishek Dutta is the founder and managing part of Aureus Law Partners. Vineet Shrivastava is a partner and Manish Parmar is a senior associate at the firm.
Aureus Law Partners
D–306, Third Floor
Defence Colony
New Delhi – 110 024
India
Mumbai | Bengaluru | Kolkata| Bhopal | Dehradun | Haldwani
Contact details
Tel: +91 11 4108 0803 / +91 11 4108 0804
Email: aureus@aureuslaw.com
Website:
