The Hon’ble Supreme Court affirmed the constitutionality of the provisions of the IBC relating to Personal Guarantors’ Insolvency Resolution.

By Shruti Swaika, on November 24, 2023

POSTED IN Insolvency and Bankruptcy,

The Hon’ble Supreme Court in a noteworthy decision affirmed the constitutionality of the provisions of the Insolvency and Bankruptcy Code (IBC) relating to Personal Guarantors’ Insolvency Resolution, which were introduced in 2019.

The matter was heard after several petitions had been filed challenging the constitutional validity of Sections 95 to 100 of the IBC. The Apex Court held that Sections 95 to 100 of the IBC do not violate Articles 14 and 21 of the Indian Constitution.

Our Partner, Shruti Swaika, shares her insights on the Apex Court’s decision.

“The Judgement provides much needed certainly to the legislation, which has not seen even a single case run through its entire course. Undoubtedly, there will be further hiccups and challenges, as is customary for any new law, but this verdict paves the way for a more accountable commercial eco-system in the country.”  – Shruti Swaika, Partner