Petitioners had challenged the November 15, 2019 notification issued below the IBC
The Supreme Court on Friday upheld the validity of the Centre’s notification permitting banks to proceed towards private guarantors for restoration of loans given to an organization below the Insolvency and Bankruptcy Code (IBC). A bench comprising justices L Nageswara Rao and S Ravindra Bhat held that approval of decision plan below the IBC doesn’t discharge private guarantors of their legal responsibility in direction of the banks.
“In the judgment, we have upheld the notification,” Justice Bhat stated 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 November 15, 2019 notification issued below the IBC and different provisions in so far as they relate to non-public 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.Â
