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2023 (7) TMI 1397 - AT - Insolvency and BankruptcyRejection of Section 7 Application as barred by Section 10A of IBC - Period of limitation - corporate guarantor defaulted to make payment - Principal Borrower can be made liable for default of corporate guarantor or not - HELD THAT:- When the Financial Creditor has invoked the corporate guarantee of the corporate guarantor by the notice dated 16.10.2020 and asked the corporate guarantor to make the payment within seven days from the receipt of the notice, the default has occurred during the 10A period and the default dated 02.07.2019 which is default alleged against the Principal Borrower can not be put to a default for corporate guarantor. Liability of corporate guarantor although is coextensive of the Principal Borrower but when the Guarantee requires invocation of the guarantee deed, default on the guarantor shall be the date when corporate guarantee has been invoked. There are no error in the Order of the Adjudicating Authority dismissing Section 7 Application as barred by time - dismissal of Section 7 Application shall not preclude the Appellant to take other recourse in accordance with law - appeal dismissed.
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