SC Upholds Centre s Notification Bringing Into Force Insolvency Of Personal Guarantors To Corporate Debtors
Various petitions were filed before different High Courts as well as before the Supreme Cour 27 May 2021, Last Updated at 6:53 pm Special Arrangement 2021-05-27T18:49:28+05:30 SC Upholds Centre s Notification Bringing Into Force Insolvency Of Personal Guarantors To Corporate Debtors outlookindia.com 2021-05-27T18:53:13+05:30
Author: Sarojanand Jha, Founding Partner, Vedanta Legal
In a recent landmark decision, the Supreme Court has upheld the challenge to a Notification dated 15
th November 2019 (“
Notification”) issued by the Ministry of Corporate Affairs, which brought into force the provisions of the insolvency of Personal Guarantor to the Corporate Debtor.
The Supreme Court has paved the way for banks and financial institutions to initiate recovery proceeding against individuals, who have guaranteed corporate loans by upholding the government notification of 15 November 2019.
Lenders can recover dues from personal guarantors: Supreme Court indiatimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indiatimes.com Daily Mail and Mail on Sunday newspapers.
Pre-pack insolvency for MSMEs now a reality
April 05, 2021
Centre issues Ordinance; debt default threshold to be notified The Centre has taken the Ordinance route to introduce pre-packaged insolvency resolution process (pre-pack) for companies classified as micro, small and medium enterprises (MSMEs).
India has 6-7 lakh companies that are classified as MSMEs, which could potentially benefit from the newly-introduced pre-packaged insolvency framework.
A pre-packaged insolvency in the Indian framework context is an arrangement where the resolution of a company’s business is negotiated with a buyer before the appointment of an insolvency professional. It is a blend of informal and formal mechanisms, with the informal process stretching up to NCLT admission, followed by an existing NCLT supervised process for resolution, as specified under the Insolvency and Bankruptcy Code (IBC).