The Kerala High Court has clarified that a simple submission of an application under the Insolvency and Bankruptcy Code (IBC) for personal insolvency does not initiate a moratorium immediately. With this ruling, the High Court has plugged a loophole that defaulters use to defend personal assets.
In its ruling, the Kerala High Court has cleared its position that the interim moratorium begins when the application is duly numbered by the tribunal.
This order, when jointly implemented with the recent Supreme Court ruling on personal guarantees, would help creditors to exercise their rights.
Justice N Nagaresh had pronounced on Friday that guarantors or promoters won’t receive an interim moratorium until the application is formally numbered …
Read the full article at: https://www.businessworld.in/article/Kerala-High-Court-Verdict-Attempts-To-Resolve-Personal-Insolvency-Loophole/22-11-2023-499681/