Supreme Court permits banks to proceed against personal guarantors under IBC

"In the judgment, we have upheld the notification," Justice Bhat said while reading out the conclusion of the judgement which decided as many as 75 petitions pertaining to the validity of the notification.

New Delhi: On Friday, the Supreme Court allowed the banks to proceed against personal guarantors for recovery of loans given to a company under the Insolvency and Bankruptcy Code (IBC).  Earlier the Central government has pushed a notification allowing banks to do so without any restrictions. The bench of the apex court comprising of justices L Nageswara Rao and S Ravindra Bhat held the Centre’s approval of resolution plan under the IBC that does not discharge personal guarantors of their liability towards the banks. "In the judgment, we have upheld the notification," Justice Bhat said while reading out the conclusion of the judgement which decided as many as 75 petitions pertaining to the validity of the notification.