A STORM IS BREWING: THE INSOLVENCY OF PERSONAL GUARANTORS

Published On: 13/01/2020

Authors:

Padmaja Kaul
The Insolvency and Bankruptcy Code, 2016 (the 'Code') has faced a barrage of amendments and course correction from both the judiciary as well as the legislature. The latest and perhaps the most significant amendment in the Code has been the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 and the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019, which along with certain provisions in the Code in relation to insolvency of individuals (including personal guarantors) have come into force with effect from December 01, 2019. INDUSLAW's Padmaja Kaul and Varun Khanna discuss the new regime.