NEW DELHI: The Supreme Court on Thursday upheld the constitutional validity of various provisions of Insolvency and Bankruptcy Code (IBC), including Section 95, which allows creditors to initiate insolvency proceedings against personal guarantors.
A bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Mishra rejected a plea against the provisions of the IBC and dismissed more than 200 petitions filed against the provision alleging violation of principles of natural justice in the process followed under the code.
While the law was enacted in 2016, in 2019 it was amended to incorporate provisions related to personal guarantors instead of limiting it to companies that were not settling the liabilities to their credito…
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