SC Upholds IBC provisions on insolvency of Personal Guarantors

Lalit Kumar Jain Vs Union of India (Supreme Court) 1. Supreme Court on Friday upheld provisions of the Insolvency and Bankruptcy Code (IBC) allowing lenders to pursue insolvency proceedings against promoter guarantors of companies facing Corporate Insolvency Resolution Process. 2. A bench of Justices L Nageswara Rao and Ravindra Bhat delivered the judgement. The ruling would allow banks to file personal bankruptcies against guarantors, even when the insolvency of firms is yet to be resolved. 3. During the hearing, Justice Ravindra Bhat said that,”The approval of resolution plan relating ...