Enforcement of Personal Guarantees - Taxsutra Reservoir

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Enforcement of Personal Guarantees

by Taxsutra
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Course Expiry: 1 year
Categories: Legal Battlefield
Publisher: Taxsutra
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Episode Duration:
70 minutes

Episode Background:
As you are aware, when loans are granted to companies / LLPs, the lenders typically seek personal guarantees from promoters / founders of such borrower companies/ LLPs. The enforcement process of such personal guarantees as envisaged under the Insolvency & Bankruptcy Court, 2016 (Code) may actually result in personal guarantees being enforced if loans are not repaid in full by corporate borrowers.

The Essar Steel order of the Hon’ble Supreme Court of India dated 15 November 2019 re-iterates the fact that creditors can pursue the unsettled debt from guarantors of the corporate debtor. Thereafter, w.e.f. 1 December, 2019, the IBBI introduced Regulations for insolvency resolution and bankruptcy processes for Corporate Debtors’ personal guarantors.

What shall the episode cover?

Against this backdrop, Taxsutra is delighted to present to you a special episode on “Enforcement of Personal Guarantees – Law & Key Issues” in association with Acuity Law, a law firm recognized for the Essar Steel transaction by IFLR1000 India Awards 2020. Though implementation of the rules and regulations is work in progress as various legal challenges are being raised by personal guarantors, in this episode, Mr. Souvik Ganguly (Founder & Managing Partner) & Mr. Gautam Narayan (Head – Disputes Practice) from Acuity Law has provided a brief overview of the law and the key issues facing enforcement of personal guarantees in India under the Code.  

Over the course of the episode, the speakers has covered an array of topics which includes the following:

A.  Rules and Regulations governing personal guarantors
B.  Issues relating to (i) Parallel claims; (ii) Subrogation rights; and (iii) Liability of guarantor
C.  Current Position and Thoughts

Author: Taxsutra
About Publisher:

Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.

Taxsutra suite of portals : 

1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law 
6.  Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)

Similar Books

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Overall Rating
Review
Categories: Legal Battlefield
Publisher: Taxsutra
About Course:

Episode Duration:
70 minutes

Episode Background:
As you are aware, when loans are granted to companies / LLPs, the lenders typically seek personal guarantees from promoters / founders of such borrower companies/ LLPs. The enforcement process of such personal guarantees as envisaged under the Insolvency & Bankruptcy Court, 2016 (Code) may actually result in personal guarantees being enforced if loans are not repaid in full by corporate borrowers.

The Essar Steel order of the Hon’ble Supreme Court of India dated 15 November 2019 re-iterates the fact that creditors can pursue the unsettled debt from guarantors of the corporate debtor. Thereafter, w.e.f. 1 December, 2019, the IBBI introduced Regulations for insolvency resolution and bankruptcy processes for Corporate Debtors’ personal guarantors.

What shall the episode cover?

Against this backdrop, Taxsutra is delighted to present to you a special episode on “Enforcement of Personal Guarantees – Law & Key Issues” in association with Acuity Law, a law firm recognized for the Essar Steel transaction by IFLR1000 India Awards 2020. Though implementation of the rules and regulations is work in progress as various legal challenges are being raised by personal guarantors, in this episode, Mr. Souvik Ganguly (Founder & Managing Partner) & Mr. Gautam Narayan (Head – Disputes Practice) from Acuity Law has provided a brief overview of the law and the key issues facing enforcement of personal guarantees in India under the Code.  

Over the course of the episode, the speakers has covered an array of topics which includes the following:

A.  Rules and Regulations governing personal guarantors
B.  Issues relating to (i) Parallel claims; (ii) Subrogation rights; and (iii) Liability of guarantor
C.  Current Position and Thoughts

Author: Taxsutra
About Publisher:

Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.

Taxsutra suite of portals : 

1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law 
6.  Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)

Similar Books

Ratings and Reviews

Overall Rating
Review
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