The appeal was filed against an order dated 2023-06-15 passed by the Adjudicating Authority, which admitted an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) filed by the Financial Creditor against the Appellant, who was the Corporate Guarantor. The Appellant challenged the initiation of proceedings against the Corporate Guarantor, arguing that proceedings against the Principal Borrower had already been admitted. The Appellant also contended that the Adjudicating Authority did not consider the documents of corporate guarantee and relied on the 'Athena Energy' judgment, while a Coordinate Bench in 'Vishnu Kumar Agarwal's Case' held that simultaneous proceedings against the Principal Borrower and Corporate Guarantor cannot proceed.
The Financial Creditor filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against the Appellant, who was the Corporate Guarantor. The Adjudicating Authority admitted the application, leading the Appellant to file an appeal. The Appellant argued that proceedings against the Corporate Guarantor should not have been initiated because proceedings against the Principal Borrower were already admitted. The Appellant also claimed that the Adjudicating Authority did not consider the documents of corporate guarantee. The Financial Creditor had issued a notice to both the Principal Borrower and the Corporate Guarantor on 2018-03-14 regarding the default in payment. The Corporate Guarantor sent a reply on 2018-03-17, contending that the Financial
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The Adjudicating Authority passed an order…
The Financial Creditor issued a notice to…
The appeal was filed against an order dated 2023-06-15 passed by the Adjudicating Authority, which admitted an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) filed by the Financial Creditor against the Appellant, who was the Corporate Guarantor. The Appellant challenged the initiation of proceedings against the Corporate Guarantor, arguing that proceedings against the Principal Borrower had already been admitted. The Appellant also contended that the Adjudicating Authority did not consider the documents of corporate guarantee and relied on the 'Athena Energy' judgment, while a Coordinate Bench in 'Vishnu Kumar Agarwal's Case' held that simultaneous proceedings against the Principal Borrower and Corporate Guarantor cannot proceed.
The Financial Creditor filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against the Appellant, who was the Corporate Guarantor. The Adjudicating Authority admitted the application, leading the Appellant to file an appeal. The Appellant argued that proceedings against the Corporate Guarantor should not have been initiated because proceedings against the Principal Borrower were already admitted. The Appellant also claimed that the Adjudicating Authority did not consider the documents of corporate guarantee. The Financial Creditor had issued a notice to both the Principal Borrower and the Corporate Guarantor on 2018-03-14 regarding the default in payment. The Corporate Guarantor sent a reply on 2018-03-17, contending that the Financial
…The Adjudicating Authority passed an order…
The Financial Creditor issued a notice to…