Insolvency Proceedings Against Personal Guarantor at Threshold Stage: Supreme Court removed HC’s Interdict

The Supreme Court has removed a High Court's interdict on insolvency proceedings against a personal guarantor, noting that the proceedings were at a threshold stage. This decision allows the insolvency process to proceed, ensuring that creditors can pursue their claims against personal guarantors. The Supreme Court emphasized the importance of adhering to the Insolvency and Bankruptcy Code (IBC) framework. The ruling reinforces the effectiveness of the IBC in resolving insolvency matters. This decision provides clarity and certainty to creditors seeking to recover dues from personal guarantors.