IBC sections valid, personal guarantors get no SC relief

Court clarifies role of the resolution professional as a facilitator and not of an adjudicator

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The Supreme Court on Thursday upheld key provisions of the Insolvency and Bankruptcy Code (IBC) including appointment of the resolution professional, denying relief for a set of personal guarantors who had challenged sections of the law.

The court was ruling on 350 petitions by personal guarantors, including by Reliance ADA Group chairman Anil Ambani, challenging the constitutional validity of several provisions of the IBC concerning personal guarantors, including sections 95 to 100.

The main contention of the petitioners was that the personal guarantor was not given the chance to argue their position, contest the launch of the insolvency resolution process, or object to the designation of the resolution professional.