Advertisement

Girish Rawat, Partner, L&L Partners Shares a Quick Byte on Supreme Court's Verdict Allowing Lenders to Initiate Insolvency Proceedings Against Personal Guarantors

The Supreme Court has reiterated the legal position that once a resolution plan approved by the COC, takes effect, it is binding on the guarantor and for this reason, a guarantor cannot escape its payment obligations as per the resolution plan. It is imperative to mention that the Supreme Court had earlier held that the successful resolution applicant takes over the corporate debtor on a fresh slate and can’t be burdened with undecided claims after the resolution plans takes effect, thus, effectively slamming the door on the subrogation right of the guarantor.


Tags assigned to this article:
Girish Rawat L&L Partners

Advertisement

Around The World

Our Publications

Advertisement