9911796707
TMI BlogCorporate Debtor includes a corporate guarantor even if Principal Borrower being an individual/sole proprietorship.X X X X Extracts X X X X X X X X Extracts X X X X ..... of the status of a "Corporate Debtor" and the effect of acknowledgment of liability on the period of limitation by way of an appeal before the hon'ble NCLAT. Facts: A credit facility was accorded to M/s. Mahaveer Construction "the Principal Borrower", a proprietary firm of the appellant, through loan agreements. The loan amount was disbursed to the Principal Borrower. M/s. Sura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form of a purported notice of payment under Section 4(1) of the Code. The Corporate Debtor replied to the said notice of demand vide letter dated 8.12.2018, inter alia, clarifying that it was not the Principal Borrower nor owed any financial debt to the financial creditor and had not committed any default in repayment of the outstanding amount without prejudice. Financial Creditor then proceeded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e NCLAT. The hon'ble appellate court opined that: Section 18 of the Limitation Act, talks of a fresh period of limitation, that shall be computed from the time when the party against whom the right is claimed acknowledges its liability. The financial creditor has not only the right to recover the outstanding dues by filing a suit, but also has a right to initiate resolution process agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess (CIRP). Even if a demand is not raised against the Principal Borrower there is an obligation of the "Corporate Debtor" being also a "corporate guarantor" in the present case.
"A corporate guarantor can thus too be a subject of CIRP proceedings under the IBC Code, 2016."
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2021 (3) TMI 1179 - Supreme Court X X X X Extracts X X X X X X X X Extracts X X X X
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