Supreme Court: Personal Guarantor Liable for Loans under IBC
The Supreme Court of India has cleared the way for lenders to file insolvency proceedings against personal guarantors of stressed companies, who are typically promoters.
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Personal Guarantor under section 95 is exempted from section 10A of IBC, 2016
Section 10A proceedings are not applicable against the Personal Guarantor under section 95 of the Insolvency and Bankruptcy Code, 2016.
Whether CIRP against Corporate Guarantor be initiated in respect of loan account of the principal borrower
Section 7 of the Code permits a financial creditor to initiate a CIRP procedure against the guarantor being a corporate debtor in accordance with the default committed by the principal borrower.
Section 14 of the I&B Code does not apply to personal guarantors
SBI initiated proceedings against Veesons under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), demanding an outstanding amount of approximately INR 61 crores as Veesons did not pay its debts on time.
Claim amount towards interest on loan alone cannot be termed as Operational Debt
A pre-existing dispute towards interest on the delayed payments before the issuance of the demand notice and that the alleged claim amount towards interest on loan alone, cannot be termed as an “Operational Debt”.
Does amount advanced as loan without proper proofs/documentations constitute a Financial Debt?
The matter is that in a situation where the Applicant is unable to prove the amount advanced as loan without proper documentations, such loan amount would not meet the requirements of a “Financial Debt”.
Financial Creditors can Initiate Insolvency against Personal Guarantors under IBC
The new framework allows Creditors to continue recovery process with Personal Guarantor after completion of the Corporate Insolvency Resolution Process.
Effect of Moratorium on Personal Properties of the Promoter given as Security
Only those properties in the name of the corporate debtor shall come under the purview of the moratorium and not the personal properties in the name of the corporate debtor.
65 Bad Loan Accounts have been referred to NCLT for resolution by Allahabad Bank
Insolvency Code has motivated a lot of lenders to suo moto move the court against their borrowers and recover their bad debts without showing any further leniency.
Indian Overseas Bank faces a bad loan of Rs.3,606.73 cr
Public sector lender Indian Overseas Bank’s net loss widened to Rs 3,606.73 crore in the March quarter due to higher provisioning for mounting bad loans.
Loan to Directors- How section 185 changed as per recent companies act, 2017 ammendment
the restriction under section 185(1) was not applicable where loan or guarantee is permissible under other provisions of Companies Act, 2013
Robust Insolvency Bankruptcy Laws to deal with bad Loans
The latest amendment bill of Insolvency & Bankruptcy, 2017 has been passed by the Lok Sabha to deal with recovery and reorganization in a speedy, reliable process.
Tax benefit on Home Loan and HRA both
In this Article we are going to discuss the tax benefits provided in the Income Tax Act to the home loan buyer.
Legal Remedies for Recovery of Loan
In this article we will briefly cover the legal remedies one can resort to against their debtors in case there is default in paying the loan amount.
Role of CIBIL Score in Credit Rating
Credit score is also named as CIBIL score that is representation of credit worthiness based on your history of credit repayment. Hence it is very crucial to keep your CIBIL score good so as to not to face any rejection of credit application.
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