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SC upholds Centre’s notification permitting banks to proceed against personal guarantors under bankruptcy code-India News , GadgetClock

SC upholds Centre’s notification permitting banks to proceed against personal guarantors under bankruptcy code-India News , GadgetClock
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SC upholds Centre’s notification permitting banks to proceed against personal guarantors under bankruptcy code-India News , GadgetClock

SC upholds Centre’s notification permitting banks to proceed against personal guarantors under bankruptcy code-India News , GadgetClock

The highest courtroom dominated that initiation of an insolvency decision plan for a corporation doesn’t absolve company ensures given by people from paying up the dues to monetary establishments

SC upholds Centre's notification permitting banks to proceed against personal guarantors under bankruptcy code

Representational picture. Reuters

New Delhi: The Supreme Court docket on Friday upheld the validity of the Centre’s notification permitting banks to proceed against personal guarantors for restoration of loans given to an organization under the Insolvency and Bankruptcy Code (IBC).

A bench comprising justices L Nageswara Rao and S Ravindra Bhat held that approval of decision plan under the IBC doesn’t discharge personal guarantors of their legal responsibility in direction of the banks.

“Within the judgment, we’ve got upheld the notification,” Justice Bhat mentioned whereas studying out the conclusion of the judgement which determined as many as 75 petitions pertaining to the validity of the notification.

Petitioners had challenged the 15 November, 2019, notification issued under the IBC and different provisions in so far as they relate to personal guarantors to company debtors.

Upholding the validity of the notification, the highest courtroom dominated that initiation of an insolvency decision plan for a corporation doesn’t absolve company ensures given by people from paying up the dues to monetary establishments.

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