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ARTICLE · 28 MAY 2024

A Probe Into The Personal Guarantor's Liability In IBC

Khurana & Khurana, Advocates and IP Attorneys
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The Insolvency and Bankruptcy Code of 2016 is a recent development in the domain of law with not many precedents set regarding certain aspects of insolvency mechanisms.

IndiaInsolvency/Bankruptcy/Re-Structuring
Nidhi Kamath
Nidhi Kamath
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INTRODUCTION:

The Insolvency and Bankruptcy Code of 2016 is a recent development in the domain of law with not many precedents set regarding certain aspects of insolvency mechanisms. One such domain in IBC that lacked clarity till recently was regarding the liability of the personal guarantors in cases of insolvency. In India, the Insolvency and Bankruptcy Code, 2016 ("IBC") governs the Corporate Insolvency Resolution Process ("CIRP"). It entails a Resolution Professional soliciting a resolution plan for a corporate debtor facing insolvency. Various Resolution Applicants propose plans, and the Committee of Creditors approves the best plan, which is then sanctioned by the National Company Law Tribunal.

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