Alerts & Updates 24th Nov 2023
Part III of the Insolvency and Bankruptcy Code, 2016 (the Code) focuses on the processes of insolvency resolution and bankruptcy applicable to individuals and partnership firms. As of now, the provisions of the Code apply only to personal guarantors of corporate debtors. The provisions were brought into effect by way of notification1 dated November 15, 2019 issued by the Union Government in the Ministry of Corporate Affairs. The notification was challenged before the Supreme Court in the case of Lalit Kumar Jain v Union of India, where a two-Judge Bench inter alia, held that the liability of a guarantor is not discharged merely on the discharge of the corporate debtor.
The detailed judgment is discussed in our alert
As per the rules of the Bar Council of India, lawyers and law firms are not permitted to solicit work or advertise. By clicking on the "I Agree" button, you acknowledge and confirm that you are seeking information relating to Economic Laws Practice (ELP) of your own accord and there has been no advertisement, personal communication, solicitation, invitation or any other inducement of any sort whatsoever by or on behalf of ELP or any of its members to solicit any work through this website.