MUMBAI: An order passed by a bankruptcy court set a precedent by ruling that a promoter cannot escape the liquidation of personal assets by simply filing for bankruptcy that indemnified the firm against all legal proceedings will have rich promoters worried.
The court has ordered lenders to go after the personal properties of M/s Schweitzer Systemtek India though the company brought in voluntary bankruptcy proceedings to protect the promoters private property from liquidation.
While admitting the case under the Insolvency and Bankruptcy Code (IBC), the court observed that personal assets of the promoters were pledged with the borrower and were not part of the corporate debt and hence outside the ambit of a moratorium. 
Under IBC, onc…
Read the full article at: http://economictimes.indiatimes.com/news/economy/policy/defaulters-personal-wealth-can-be-auctioned-under-ibc/articleshow/59640543.cms