Simultaneous Insolvency Proceedings against Corporate Debtors and Personal Guarantors Permissible

By INSOL India - Editorial Team Posted On : October 15, 2020

Finance Minister, Nirmala Sitaraman, in a response during a debate on the IBC (Second Amendment) Act, 2020 in the Rajya Sabha observed that the law permits for simultaneous resolution and/or insolvency and bankruptcy proceedings against corporate debtors and personal guarantors. She mentioned that the corporate debtor often has guarantors, so, for comprehensive corporate insolvency resolution and liquidation, it is necessary that the insolvency of the corporate debtor as well as its guarantors are considered together to whatever extent it is possible.