Supreme Court: Guarantor Equally Liable for Loan, Faces Parallel Insolvency

• Supreme Court rules guarantor is as much a participant as the principal debtor in loan repayment.
• Insolvency proceedings can be initiated simultaneously against both the principal debtor and its corporate guarantor.
• No statutory bar under IBC prevents financial creditors from initiating parallel proceedings to recover dues.
• Decision affirms the Indian Contract Act principle: guarantor's liability is co-extensive with the principal debtor.
• Rejects appeals to stay parallel proceedings, allowing recovery from guarantor companies.