Loading Now

Zee case curiosity: Why personal guarantees for loans taken by firms face the arclights again

Zee case curiosity: Why personal guarantees for loans taken by firms face the arclights again

Zee case curiosity: Why personal guarantees for loans taken by firms face the arclights again


Indeed, to minimize scope for ambiguity, the IBC outlines a separate legal process for handling personal guarantors of corporate debt. While a company’s insolvency is handled via the CIRP, a promoter’s personal insolvency is governed by a distinct framework that is also adjudicated under the same roof—the NCLT.