Corporate Debtor liability not extinguished upon Insolvency Resolution Plan Approval

State Bank of India Vs Anil Dhirajlal Ambani (NCLT Mumbai) The issue under consideration is whether the liability of a guarantor of a debt of a corporate debtor stands reduced/extinguished upon an Insolvency Resolution Plan in respect of the corporate debtor, being approved under the Insolvency and Bankruptcy Code, 2016? NCLT state that, basing on the law decided the Hon‟ble High Court answered the question in the negative. It held that a discharge which the principal debtor may secure by operation of law in bankruptcy or in liquidation proceedings does not absolve the surety of his liabilit...