Application u/s 7 by Financial Creditor against Guarantor maintainable on default of Principal Borrower

Sandeep Kasare Vs IL&FS Financial Services Ltd. (NCLAT Delhi) NCLAT Delhi held that Financial Creditors can invoke the proceedings under section 7 of the Insolvency and Bankruptcy Code, 2016 against the Guarantor, who on default of Principal Borrower transforms into Corporate Debtor Facts- IL&FS offered to extend to Smt. Anupama Agarwal (“the Borrower”) a Rupee Term Loan facility upto Rs.30,00,00,000/-. The Offer Letter itself, while noticing the terms and conditions noticed in “Security Package”, consisting of Primary Security, mortgage by way of deposit of original title deed...