The Supreme Court on Friday upheld the constitutionality of the Centre’s November 15, 2019, notification that had allowed financial institutions to pursue proceedings against personal guarantors, commonly promoters, of stressed companies facing insolvency.
The apex court’s order will clear the decks for lenders to recover their remaining debt from personal guarantors following the conclusion of the Corporate Insolvency Resolution Process (CIRP).
An SC bench of Justices Ravindra Bhat and L Nageswara Rao delivered the ruling, which will enable banks to file personal bankruptcies against personal guarantors, even though the insolvency of companies is yet to be settled.
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Read the full article at: https://www.businesstoday.in/sectors/banks/sc-upholds-ibc-rule-says-personal-guarantors-liable-for-corporate-debt/story/439659.html
