Here we are sharing a piece of big news with you the Supreme Court (SC) order allowing bankruptcy proceedings against personal guarantors of loans to defaulter firms will open up a fresh window of healing, potentially multiplying banks’ realisation. Since the news has come on the internet and it has gone viral on the social media platforms. This news has been gaining huge attention from the people as they are super curious to know about the whole information. Here we have more information about the news and we will share it with you in this article.
It should enhance lenders’ leverage with defaulters and deter romantic personal guarantees by promoters in the future, bankers and lawyers stated. The new data from the Insolvency and Bankruptcy Board of India (IBBI) show that a total of 2,289 cases connected to personal guarantees involving corporate debt of Rs 1.63 lakh crore were filed at the National Company Law Tribunal (NCLT). Of these, 282 are admitted, out of which 21 have yielded Rs 91.27 crore. Now lots of people are super curious to know about the news. Swipe up the next page for more information about the news.
The order indicates cases stuck at the NCLT will move forward with banks likely making fresh pleas in this regard. Biswajit Dubey, Supreme Court lawyer and an expert in bankruptcy laws stated “Banks will not only pursue the old suits but will also file new applications,”. “In my reviews, this will lead to more recoveries individuals will be worried about losing their assets. The judgment could also improve recovery from accounts that have been written off, which will lead to gains in banks’ bottom lines. You are on the right page for more information about the news, so please read the complete article.
Hari Hara Mishra, CEO, of the Association of ARCs in India “There have been roughly 1000 cases of personal insolvency where resolution professionals have been appointed. The Supreme Court order permits banks to become parties to such cases. Bankers stated they would pursue old cases and bankruptcy stigma will pursue several promoters to settle dues. Thursday, the Supreme Court ignored a set of petitions filed by former promoters of bankrupt firms including Venugopal Dhoot, Anil Ambani, and Sanjay Singal, difficult personal bankruptcy proceedings initiated against them. Here we have shared all the information that we had. Stay tuned to us for more updates.