The recovery rate from personal guarantors under the Insolvency Bankruptcy Code (IBC), which currently stands at 5.22 per cent, is likely to rise post the Supreme Courts ruling affirming the constitutionality of the IBC provisions regarding Personal Guarantors Insolvency Resolution, said a report by CareEdge Ratings.
The Supreme Court upheld the constitutionality of IBC provisions on Personal Guarantors Insolvency Resolution, dismissing over 200 petitions which challenged its legal validity.
This ruling implies that the personal assets of guarantors can now be utilised to settle outstanding debts owed to creditors.
Out of total cases admitted between financial year 20 till the second quarter of financial year 24, only 21 have yielded ap…
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