Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Informative
Only 2% Personal Guarantee Claims Recovered Under IBC so far
Insolvency & Bankruptcy Code
According to the latest data from the Insolvency and Bankruptcy Board of India (IBBI), creditors have recovered 2.16% (Rs 102.78 crore) of their admitted claims from personal guarantors under the Insolvency and Bankruptcy Code (IBC). \r
Among 383 admitted personal guarantors' insolvency processes, 124 have concluded. Notably, 86 cases closed due to lack of repayment plans or rejection, while 26 received plan approval. Initially enabled in November 2019, the provision for personal guarantors' insolvency resolution faced challenges. \r
IBBI's recent amendment allows the same insolvency professional for both company and guarantor, aiming for better coordination. Legal experts caution against hasty repayment plan approvals, citing systemic flaws and creditor confidence risks.
