CIRP - If there are two borrowers or if two corporate bodies ...

Section 7 IBC allows proceedings against two corporate debtors, but full debt recovery from one ends further claims.

September 23, 2022

Case Laws Insolvency and Bankruptcy SC

CIRP - If there are two borrowers or if two corporate bodies fall within the ambit of corporate debtors, there is no reason why proceedings under Section 7 of the IBC cannot be initiated against both the Corporate Debtors. Needless to mention, the same amount cannot be realised from both the Corporate Debtors. If the dues are realised in part from one Corporate Debtor, the balance may be realised from the other Corporate Debtor being the co-borrower. However, once the claim of the Financial Creditor is discharged, there can be no question of recovery of the claim twice over. - SC

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CIRP - If there are two borrowers or if two corporate bodies ...

Section 7 IBC allows proceedings against two corporate debtors, but full debt recovery from one ends further claims.

September 23, 2022

Case Laws Insolvency and Bankruptcy SC

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