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Bank can institute/continue with proceedings against a Guarantor under SARFAESI despite IBC proceedings against Principal Borrower
Case Law Details
- Case Name
- Kiran Gupta Vs State Bank of India & Anr. (Delhi high Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Delhi High Court
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Kiran Gupta Vs State Bank of India & Anr. (Delhi high Court)
Whether a Bank/Financial Institution can institute or continue with proceedings against a Guarantor under the SARFAESI Act, when proceedings under the IBC have been initiated against the Principal Borrower & the same are pending adjudication?
Section 128 of the Contract Act provides that the liability of a Guarantor is coextensive with that of the Principal Debtor.
Since the liability of a guarantor is co-extensive with that of the principal debtor and not in the alternative, it cannot be said that proceedin...
