In a significant ruling, the Supreme Court on Thursday upheld the constitutionality of IBC provisions on Personal Guarantors Insolvency Resolution, dismissing over 200 petitions that challenged their legal validity.
A Bench of Chief Justice of India (CJI) D Y Chandrachud with Justices J B Pardiwala and Manoj Misra held that the provisions (Sections 95 to 100) held that IBC provisions on personal guarantors insolvency process did not suffer from arbitrariness as contended by petitioners. The latest apex court move is expected to give a fillip to the lenders (mostly banks) efforts to recover dues of corporate debtors from personal guarantors., who are mostly promoters of companies.
The statute (IBC) does not suffer from any manifest arbitr…
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