New Delhi, May 21 (UNI) The Supreme Court on Friday upheld the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC), allowing banks to proceed against personal guarantors, usually promoters of big business houses to corporate debtors for recovery of loans of a company.
A bench comprising Justices L Nageswara Rao and S Ravindra Bhat said, "we have upheld the notification" while reading out the conclusion of the ruling which decided 75 pleas related to the validity of the Centre's notification.
Petitioners including industrialists Anil Ambani, Kapil Wadhawan, Sanjay Singhal, and Venugopal Dhoot had challenged the November 15, 2019 notification issued under the IBC and other provisions in as far as they relate to personal guarantors to corporate debtors.
The order will pave the way for creditors to recover the remaining debt from personal guarantors after the conclusion of the Corporate Insolvency Resolution Process (CIRP).
This will also accelerate the efforts by lenders trying to clear one of the world’s worst mounds of bad loans.
UNI JW SHK1640