SBI had moved the plea to initiate insolvency proceedings against Gopinath in 2022, when NCLT issued notice and appointed Bhuvaneshwari as Gopinath’s RP.
The case has progressed at a snail’s pace since then, owing to pendency of challenges to provisions relating to personal guarantors under the IBC before the Supreme Court. The apex court ultimately upheld the validity of the provisions in November 2023.
A personal guarantor is an individual who provides a written commitment to a lender, assuring repayment of a loan or credit facility taken by a company. If the company defaults on its obligations, the guarantor’s personal assets may be seized by the lender to recover the outstanding amount.
In 2019, the government introduced…
