Guarantor couldn’t become financial creditor without payment in discharge of guarantee

Suresh Kumar Vs Central Bank of India (NCLAT Delhi) Conclusion: Guarantor could not become the financial creditor just because a guarantee had been given against the loan advanced to the corporate debtor. It had to be shown that the loan was paid by the guarantor when the corporate debtor failed to discharge its liability then only they could step into the shoes of the creditor and file claim as financial creditor in the insolvency of the corporate debtor. Held: In the instant case, the corporate debtor was admitted into the insolvency on an application filed by the operational creditor under ...