Position Of Personal Guarantors Under The IBC: Pre-2025 Bill And Post-2025 Bill
- IJLLR Journal
- Sep 19
- 1 min read
Sneha Sakshi, Symbiosis Law School, Pune
ABSTRACT
The paper examines the Amendments of the law on personal guarantor in the Insolvency and Bankruptcy code, 2016 (IBC) in India which have taken place up to the date of the Amendment Bill of 2025 and after. It is pursuant to the judicial interpretations, statutory provisions and practical issues, particularly on the moratorium, enforcement of creditors and exposure to bankruptcy of personal guarantors. The 2025 Bill is a tremendous change as it limits interim moratorium, defines the responsibility of repayment and lets creditors exercise power whereas the guarantors take responsibility. The paper presents an analytical description of the manner in which the interest of creditors and personal guarantors are captured under the legislative reforms as being part of the larger interests of the IBC in effecting an effective and timely insolvency process.
Keywords: Personal Guarantors, Amendment Bill, Interim Moratorium, Insolvency, Creditor, Enforcement, Insolvency & Bankruptcy Code, 2016.
