Hon’ble NCLAT held that:
(i) The fact that guarantee has not been invoked, does not absolve the Corporate Guarantor from debt. The debt which is Corporate Guarantor, the Company has been given corporate guarantee and undertaken to pay the debt.
(ii) The liability of Corporate Guarantor is co-extensive with the Lenders and the Lenders are at liberty to require the performance by the Guarantor of its obligation.
(iii) The submission of the Appellant that since guarantee has not been invoked there is no debt cannot be accepted. Guarantee continues to bind the Corporate Guarantor to discharge its liability and the fact that as on date, guarantee has not been invoked, cannot be a ground for Appellant to be liquidated under Section 59 of the IBC.