The Insolvency and Bankruptcy Board of India has removed the restriction preventing the same insolvency professional from participating in both the resolution process for a company and for its individual guarantor.
This will reduce the risk of misrepresentation and concealment of information, as the same RP would be involved in both processes, according to Alay Razvi, partner at Accord Juris LLP, Hyderabad.
According to Delhi High Court Advocate Shashank Agarwal, this makes sense as the RP, who has already been working on the corporate, which is under the Corporate Insolvency Resolution Process, would already be aware of the affairs of the personal guarantor. This would expedite the process, he said.
Sushmita Gandhi, partner at IndusLaw,…
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