Corporate insolvency resolution process can be initiated separately and simultaneously against a corporate debtor and a corporate guarantor for the same debt and same default

In the case of BRS Ventures Investments Ltd. vs. SREI Infrastructure Finance Ltd. & Anr. the Hon’ble Supreme Court of India (“Supreme Court”) held that simultaneous insolvency proceedings against a borrower and a corporate guarantor can be initiated for the same debt and default; and that assets of a subsidiary do not form part of the corporate insolvency resolution process (“CIRP”) of its holding company.

Brief Facts

Filed under:
India, Insolvency & Restructuring, Litigation, JSA, Bank of India, State Bank of India, Insolvency and Bankruptcy Code (India), Supreme Court of India, Financial services banks, Financial services corporate
Authors:
Divyanshu Pandey , Shrijita Bhattacharya , Aaditya Shukla
Location:
India
Firm:
JSA