Whether Personal Guarantor is entitled to include as Secured Creditor in the list of creditors prepared under Section 36 of IBC claiming right of subrogation under Section 140 of Contract Act? – K.V. Jayaprakash Vs. State Bank of India – NCLAT New Delhi

In this case, proceedings under IBC against the Corporate Debtor who is a Principal Borrower is going on at Liquidation stage and property of personal guarantor is sold for recovery of debt under the SARFAESI Act. The main endeavour of the appellant (Guarantor) is that, when insolvency or liquidation proceedings are initiated against the Corporate Debtor(Principal Borrower) and if the property of personal guarantor is sold for recovery of debt under the SARFAESI Act, he is entitled to recover the amount from the corporate debtor under Section 140 of the Indian Contract Act and the liability of the surety is coextensive with that of the Principal Debtor, thereby, he is entitled to be included as a Secured Creditor in the list of creditors under Section 36 of IBC. Read here NCLAT view.

Whether Personal Guarantor is entitled to include as Secured Creditor in the list of creditors prepared under Section 36 of IBC claiming right of subrogation under Section 140 of Contract Act? – K.V. Jayaprakash Vs. State Bank of India – NCLAT New Delhi Read Post »