Corporate Debtor's Liability As Guarantor Remains Unaffected By Internal Adjustments Among Financial Creditors: NCLAT

The NCLAT has ruled that a "corporate debtor's liability as a guarantor remains unaffected by internal adjustments among financial creditors." This is a significant ruling that reinforces the principle of procedural fairness in insolvency proceedings. The court's decision, which is a significant victory for the government, was made on the grounds that the company's claim was not supported by evidence.