Completion of CIRP of Corporate Debtor does not absolve Director’s liability in cases filed under Section 138 of Negotiable Instruments Act

Introduction:

Filed under:
India, Insolvency & Restructuring, Litigation, Phoenix Legal, Negotiable Instruments Act 1881 (India), Insolvency and Bankruptcy Code (India), Supreme Court of India
Authors:
Neha Naik , Sanjeev Sambasivan
Location:
India
Firm:
Phoenix Legal
Supreme Court reaffirms- Corporate Guarantors to ‘non-corporate’ debtors to face IBC proceedings

Introduction:

The Supreme Court (“SC”) in the recent judgment of K. Paramasivam v. The Karur Vysya Bank Ltd. & Anr.[1], held that a Corporate Insolvency Resolution Process (“CIRP”) can be initiated against a corporate guarantor, even if the principal borrower is not a ‘corporate person’.

Factual Matrix and Arguments:

Filed under:
India, Company & Commercial, Insolvency & Restructuring, Litigation, Phoenix Legal, Insolvency and Bankruptcy Code (India), Supreme Court of India
Authors:
Neha Naik , Sanjeev Sambasivan
Location:
India
Firm:
Phoenix Legal