The Supreme Court on Friday affirmed the Central governments November 15, 2019 notification which enabled financial institutions to proceed against the promoters in their capacity as personal guarantors of the defaulting corporate debtor.
The court ruling will clear the decks for creditors to recover the remaining debt from personal guarantors after the conclusion of the Corporate Insolvency Resolution Process (CIRP).
Industrialists such as Anil Ambani, Kapil Wadhawan, Sanjay Singhal, and Venugopal Dhoot had challenged the 2019 notification, which had extended the personal insolvency provisions of the Insolvency and Bankruptcy Code (IBC) to the promoters as well.
The bench of justices L Nageswara Rao and S Ravindra Bhat, reading out the…
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