Centre for Corporate Law Studies | Blog

By Khyati Sharma , 4th year student, Institute of Law, Nirma University As every person engaged in business activities was aiming to expand their horizons of profit-making, the economy of the whole world had to bear the brunt of COVID-19 crisis. The stock exchanges worldwide were hit so hard that the people who invested money had to incur huge losses. Thousands of people in the world died due to this pandemic. Many COVID-19 affected countries had to implement lockdown to protect the remaining population. Hence, all the business activities like factories, industries, shops etc. had to be closed down, all of which led to an irreparable loss. This unimaginable cataclysm was beyond the control of humans. Undoubtedly, the national as well as international business was severely affected. Therefore, to support the entities doing business, the Indian government had to introduce an IBC Amendment Ordinance 2020 as a relief measure in this urgent situation. There are various aspects in this am

By Palak Dheer , 4th year student, Institute of Law, Nirma University   As per the notification of central government dated 15 th November 2019, from 1 st December 2019 creditors can now initiate insolvency proceedings against a personal guarantor of the corporate debtor, effectively bringing in force the part III of IBC dealing with the insolvency and bankruptcy of individuals and partnership firms in so far as it is applicable to personal guarantors of a corporate debtor. Pursuant to this notification, various rules and regulations have been brought into effect. The Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 (hereafter insolvency rules) and The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 (hereafter insolvency regulations), govern their resolution process along with part III of IB