News & Media 7th Dec 2023

SC asks runaway guarantors to pay. Will this change the corporate borrower-lender equation?

Authors

Mukesh Chand Senior Counsel | Mumbai

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Sangita Mehta from The Economic Times writes about the recent Supreme Court decision has brought the promoter-guarantor almost at par with a home loan borrower who can lose his house if he fails to meet his debt obligations in the article “SC asks runaway guarantors to pay. Will this change the corporate borrower-lender equation?”

While it is true that lenders have taken on personal guarantees (PG) from promoters for a long time, they have made little headway in recovery in the case of a default.

Read the full article here which also has comments from ELP’s  Senior Counsel Mukesh Chand.