NEW DELHI: The government will review the issue of the bar on liquidating the assets of those who have given personal guarantees against loans when it comes to companies undergoing insolvency resolution, officials said. There is already arestriction on similar seizures with regard to guarantees made by corporates.
This stems from a recent ruling of the National Company Law Appellate Tribunal (NCLAT) that the personal assets of guarantors cannot be seized during the moratorium on the disposal of assets thats in place while the insolvency process is underway.
A 14-member law committee chaired by corporate affairs secretary Injeti Srinivas is currently engaged in identifying changes that need to be made in the Insolvency and Bankruptcy Co…
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