Supreme Court Upholds Simultaneous CIRP Against Principal Borrower and Guarantor in the case of ICICI Bank and others

The Supreme Court has authoritatively settled the controversy surrounding simultaneous insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 by holding that Corporate Insolvency Resolution Process (“CIRP”) can simultaneously proceed against the principal borrower and the corporate guarantor for the same debt. 

The Court clarified that such proceedings neither violate the principles underlying the IBC nor attract the doctrine of election, while simultaneously cautioning against double recovery and emphasizing the obligation to update claims under the CIRP Regulations.