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Supreme Court (SC) order allowing bankruptcy proceedings against personal guarantors of loans to defaulter companies will open up a new window of recovery, potentially multiplying banks realizations. ....
The latest data from the Insolvency and Bankruptcy Board of India (IBBI) show that a total of 2,289 cases related to personal guarantees involving corporate debt of Rs 1.63 lakh crore have been filed at the National Company Law Tribunal (NCLT). Of these, 282 have been admitted, out of which 21 have yielded Rs 91.27 crore. The order means cases stuck at the NCLT will move forward with banks likely making fresh pleas in this regard. ....
"IBC cannot be held to be operating in a retroactive manner in order to hold it violative of the constitution," it said. "Thus, we hold that the statute does not suffer from the vices of manifest arbitrariness." ....
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