Author: Sarojanand Jha, Founding Partner, Vedanta Legal
In a recent landmark decision, the Supreme Court has upheld the challenge to a Notification dated 15th November 2019 (Notification) issued by the Ministry of Corporate Affairs, which brought into force the provisions of the insolvency of Personal Guarantor to the Corporate Debtor.
The expression Personal Guarantor is a common term in a financial transaction, especially in loan borrowing transaction. In simple terms, Personal Guarantor means the person nominated by the Borrower and accepted by the Bank who will execute the Personal Guarantee in favour of the Bank qua the repayment of the loan amount. The liability of the guarantor is co-extensive with that of the principal Borrower….
Read the full article at: https://www.outlookindia.com/website/story/outlook-spotlight-sc-upholds-centres-notification-bringing-into-force-insolvency-of-personal-guarantors-to-corporate-debtors/383726
