Discharge of Principal Borrower when Resolution Plan is approved in CIRP of Surety? | Guarantee extinguished after approval of Resolution Plan? | Simultaneous IBC Proceedings against Corporate Debtor and Guarantor | Subrogation in Insolvency | Assets of Subsidiary Company in Resolution Plan of Holding Company – BRS Ventures Investments Ltd. Vs. SREI Infrastructure Finance Ltd. and Anr. – Supreme Court
July 24, 2024
In this important judgment, Hon’ble Supreme Court clarifies following issues: A. Liability of Guarantor / Surety B. Discharge of Principal Borrower when Resolution Plan is approved in CIRP of Surety/ Guarantor vs. Discharge of Surety/ Guarantor when Resolution Plan is approved in CIRP of Principal Borrower? C. Simultaneous Proceedings under the IBC against Corporate Debtor and Guarantor D. Subrogation under Section 140 of the Indian Contract Act, 1872. E. Whether the assets of the Corporate Debtor were part of CIRP in respect of Corporate Guarantor.