Personal guarantors can face insolvency proceedings: Supreme Court
The Supreme Court of India has upheld the constitutional validity of provisions in the Insolvency and Bankruptcy Code (IBC), including allowing creditors to initiate insolvency proceedings against personal guarantors. The decision will enable creditors to take action against ousted promoters of companies that underwent insolvency resolution. So far, 2,300 cases have been filed against personal guarantors, with claims totaling INR 1.6 lakh crore ($21.7 billion).
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