ICICI Bank Limited vs. Era Infrastructure (India) Limited [2026 INSC 201]

Creditor cannot be forced to restrict his claim against a debtor or guarantor

RELEVANT PARAGRAPH

90. Restricting the claim of a creditor against a debtor or a guarantor is likely to defeat the purpose of a guarantee. Since a guarantor’s liability is co-extensive, forcing the creditor to elect would essentially make it sacrifice part of its claim. This is not how a guarantee works, particularly when the Code does not provide for such election.

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