In a significant judgment, the Supreme Court on Thursday (November 9) upheld the constitutionality of the provisions of the Insolvency and Bankruptcy Code (IBC) relating to Personal Guarantors’ Insolvency Resolution, which were introduced through the amendments made in 2019.
The Court held that these provisions (Section 95 to 100 IBC) cannot be held as unconstitutional for not affording an opportunity of hearing to the personal guarantors before the insolvency petition filed by creditors is admitted against them and the moratorium is automatically applied against them as soon as the insolvency petition is filed.
“The statute (IBC) does not suffer from any manifest arbitrariness to violate Art 14 of the Constitution,” declared a benc…
Read the full article at: https://www.livelaw.in/top-stories/breaking-supreme-court-upholds-constitutionality-of-ibc-provisions-relating-to-personal-guarantors-says-adjudicatory-role-cant-be-read-into-sec-97-241983