The Supreme Court ruling on Thursday upholding the constitutionality of the Insolvency and Bankruptcy Code (IBC) is expected to help lenders of companies under resolution and facilitate hearings in insolvency petitions against personal guarantors, according to experts.
The judgment passed by the Supreme Court would further strengthen the financial sector as the personal guarantors to corporate debtors are now duty bound to furnish necessary information as may be sought by the Resolution Professional on an application of a creditor. These personal guarantors, who are generally promoter directors of the corporate debtor would now be required to follow the rigours of time lines provided for Insolvency of Individuals and such personal guara…
Read the full article at: https://www.businesstoday.in/latest/economy/story/experts-welcome-supreme-court-ruling-on-ibc-to-further-strengthen-financial-sector-405266-2023-11-09