The government has firmed up a plan to remove the bar on personal guarantors to transfer or dispose of their assets under the insolvency resolution process, according to an official source. This is despite the Supreme Court upholding the constitutionality of the moratorium.The move by the ministry of corporate affairs (MCA) is aimed at ensuring the proceeds of such asset sales can be used to facilitate repayment of the loans.Currently, when a plan under the corporate insolvency resolution process (CIRP) is admitted in a tribunal, the assets of debtors and personal guarantors are placed under moratorium as per Section 96 of the Insolvency Bankruptcy Code (IBC).
However, under the individual insolvency resolution process (IIRP), an interim…
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