Corporate Guarantor Can Face CIRP Alongside Principal Borrower

Canara Bank invoked Citron Infraprojects' corporate guarantee for the borrowings of Shrivallabh Pittie Industries, whose CIRP was already pending. 

Citron argued that its own CIRP was premature because the principal borrower's resolution plan contemplated repayment of the bank's dues and that parallel proceedings could result in double recovery. NCLT rejected both objections.