CIRP can be initiated against ‘Corporate Guarantor’ without proceeding against principal borrower

K. Paramasivam Vs Karur Vysya Bank Ltd. & Anr. (Supreme Court of India) The question raised in the said appeal is whether CIRP can be initiated against the Corporate Guarantor without proceeding against the principal borrower. The issues raised in this appeal are settled by this Court in Laxmi Pat Surana v. Union Bank of India and Another, (2021) 8 SCC 481. As held by this Court in Laxmi Pat Surana (supra), the liability of the guarantor is co-extensive with that of the Principal Borrower. The Apex Court held that the judgment in Laxmi Pat Surana (supra), rendered by a three-Judge Bench of...