Liability of corporate guarantor is co-extensive with principal borrower under IBC

Union Bank of India Vs Bengal Shelter Housing Development Limited (NCLT Kolkata) Held that the liability of the corporate guarantor is co-extensive with the principal borrower, and accordingly, both the principal borrower and corporate guarantor are equally liable for the default. Accordingly, CIRP application u/s. 7 of IBC allowed. Facts- Union Bank of India (Petitioner/ Financial Creditor), has preferred this petition u/s. 7 of the Insolvency and Bankruptcy Code, 2016 against Bengal Shelter Housing Development Ltd. (Respondent/ Corporate Debtor), praying for admission of the Corporate Debtor...