Insolvency Resolution Of Corporate Guarantor Won't Bar Creditor From Filing CIRP Against Corporate Debtor For Balance Debt : Supreme Court

The Supreme Court ruled that creditors can initiate a Corporate Insolvency Resolution Process (CIRP) against a corporate debtor even after a CIRP against the corporate guarantor is completed. The Court clarified that the insolvency resolution of a corporate guarantor does not discharge the corporate debtor's remaining debt. This decision emphasizes that a creditor's acceptance of a resolution plan for the guarantor does not affect the principal borrower's liability. The guarantor, under subrogation, can also recover the paid amount from the debtor.