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2023 (3) TMI 24 - AT - Insolvency and BankruptcyLiability of the guarantor / surety upon approval of the Resolution Plan - liability limited to the extent of the balance recoverable / remaining amount of default, or not - HELD THAT:- The liability of the Guarantor, if any, is limited to the balance amount remaining post approval of Resolution Plan, which is neither disclosed nor determined by Respondent No. 1. in the event the Principal Borrower enters CIRP and a Resolution Plan has been approved in its favour, the claim of the creditors against the Guarantee is strictly limited to the balance outstanding, that too in terms of the Guarantee Deed executed between parties. The standard of examination of default, as adopted by the Adjudicating Authority, is erroneous and reflects non-application of mind. The impugned order has been passed in gross violation of the principles of natural justice as the impugned order has been passed by the Adjudicating Authority without providing an opportunity of hearing to the Corporate Debtor. As evident from the Order dated 03.08.2021, the hearing in the matter was interrupted due to a technical glitch. However, the Adjudicating Authority has proceeded to reserve its judgment on the said date. There are no merit in the Appeal to interfere with the order impugned passed by the Adjudicating Authority - appeal dismissed.
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