On 9 November 2023, a three-judge bench led by Chief Justice D.Y. Chandrachud, with Justices J.B. Pardiwala and Manoj Misra, upheld the constitutionality of Sections 95, 96, 97, 99, and 100 of the Insolvency and Bankruptcy Code, 2016. These provisions allow loan creditors to initiate insolvency proceedings against individual and partnership firm debtors.
The decision came after the Bench heard 391 petitions challenging the constitutional validity of these provisions over two days.
Background
On July 11th, 2022, Reliance ADA Group Chairman Anil Ambani challenged several provisions of the Insolvency and Bankruptcy Code, 2016 (the Code) pertaining to the Personal Guarantors of a Corporate Debtor.
In 2016, Mr. Ambani gave personal gu…
Read the full article at: https://www.scobserver.in/reports/rights-of-personal-guarantors-in-insolvency-proceedings-judgement-pronouncement/