LAXMI PAT SURANA vs UNION BANK OF INDIA

The Supreme Court addressed two key issues regarding the initiation of proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016. It ruled that a financial creditor can initiate action against a corporate debtor based on a guarantee provided for a loan, even if the principal borrower is not a corporate person. Additionally, the court held that an application filed after three years from the declaration of a loan account as a Non-Performing Asset is not barred by limitation, provided it is within the permissible time frame under the Code.