Under the IBC, enforcing personal guarantee remains a tall order

Insolvency law experts say that invoking personal guarantees goes against the spirit of the IBC

Topics
Insolvency and Bankruptcy Code | IBC

Ruchika Chitravanshi  |  New Delhi 

As lenders scramble to invoke promoter guarantees against corporate debtors with little success, government officials say a corporate insolvency resolution process is not over till the insolvency of the personal guarantor is also resolved. The law may have enabled lenders to invoke personal guarantees against corporate debtors.

In practice, however, it is proving to be much more difficult, with several grey areas leaving to interpretation issues such as the correct timing of such a move as well as the amount that can be claimed through this provision. The provision for the ...

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, October 24 2020. 06:08 IST
RECOMMENDED FOR YOU
.