Big victory for banks! SC upholds IBC rule, says personal guarantors liable for corporate debt
The apex court s order will clear the decks for the lenders to recover their remaining debt from personal gurarantors following the conclusion of the Corporate Insolvency Resolution Process (CIRP)
BusinessToday.In | May 21, 2021 | Updated 13:14 IST
SC on Friday, May 21 upheld IBC provisions of corporate debt recovery from personal guarantors
The Supreme Court on Friday upheld the constitutionality of the Centre s November 15, 2019, notification that had allowed financial institutions to pursue proceedings against personal guarantors, commonly promoters, of stressed companies facing insolvency.
The apex court s order will clear the decks for lenders to recover their remaining debt from personal guarantors following the conclusion of the Corporate Insolvency Resolution Process (CIRP).
The major news headlines of the day, and more. “The Ministry of Electronics and IT has written a strong communication to the global team of Twitter registering objection on the use of ‘Manipulated Media’ tag on certain tweets made by Indian political leaders with reference to a toolkit created to undermine, derail and demean the efforts of the Government against COVID19 pandemic,” a Ministry source said. The Prime Minister has urged bringing medical services closer to COVID-19 patients, coming up with a new mantra
Jahan bimaar, wahin upchaar at a video conference with doctors where he choked up while speaking of lives lost to the virus.
Suraksha Asset Reconstruction Company Ltd. has emerged as the leading bidder for bankrupt construction firm Jaypee Infratech Ltd. in the ongoing fourth round of bidding. In the previous round, NBCC had been declared as the winning bidder but the process was restarted following directions from the Supreme Court.
IL&FS Case: With Rs 43,000 Crore Of Debt Addressed, Targetted Recovery Raised By Rs 5,000 Crore To Rs 61,000 Crore
Uday Kotak speaks during an interview in Mumbai. (Abhijit Bhatlekar/Mint via Getty Images)
In a positive development, Uday Kotak led board of the Infrastructure Leasing and Financial Services (IL&FS) has successfully addressed Rs 43,000 crore debt of the bankrupt company, while also raising the expected overall recovery from the earlier estimate of Rs 56,000 crore to Rs 61,000 crore,
The Hindu Businessline.
IL&FS had an overall debt of about Rs 99,000 crore as of October 2018. The Rs 43,000 crore component addressed so far constitutes about 44 per cent of the same, and 71 per cent of the revised recovery target of Rs 61,000 crore.
Spectrum under IBC can’t be used if govt dues are not paid: NCLAT
Premium
Ruling deals a blow to lenders to bankrupt Reliance Communications (RCom), Aircel Group and Videocon Telecommunications Ltd
(Photo: Mint)
Share Via
Read Full Story
Spectrum held by telecom operators cannot be transferred to new buyers under insolvency proceedings if government dues are not cleared, the National Company Law Appellate Tribunal (NCLAT) ruled on Tuesday, dealing a blow to lenders to bankrupt telcos Reliance Communications Ltd (RCom), Aircel Group and Videocon Telecommunications Ltd.
The appellate tribunal clarified that spectrum, which is an intangible asset of a telecom company, can be subjected to insolvency proceedings or liquidation. However, telcos cannot use or transfer the airwaves under the Insolvency and Bankruptcy Code (IBC) without settling government dues.