Verdict

SC ruling to hold personal guarantor accountable in IBC cases

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'This judgement is probably one of the final key missing pieces in the IBC framework. This significantly enhances the position of the lenders as it allows them the leeway to invoke the personal guarantee given by the promoters - thereby potentially paving the way for more settlements and that too in a shorter time frame,' 

- Samir Paranjpe, Partner and Forensics Leader, Grant Thornton Bharat LLP

 

This article appeared in Business World on 22 May 2021. Also appeared in Outlook India and Yahoo Finance.