AIR 2018 SUPREME COURT 3876 ::(2018) 2 WLC(SC)CVL 463 ::(2019) 1 CLR 245 (SC) ::(2018) 4 RecCivR 110 ::(2018) 9 Scale 597 ::AIR 2018 SC (Civil) 2721

Supreme Court Of India

Hon'ble Judge(s): Rohinton Fali Nariman, Indu Malhotra , JJ

Insolvency and Bankruptcy Code (31 of 2016) , S.14, S.60— Moratorium - Is not applicable to personal guarantors of corporate debtor. S. 60(1) of Code refers to insolvency resolution and liquidation for both corporate debtors and personal guarantors, Adjudicating Authority for which shall be National Company Law Tribunal, having territorial jurisdiction over place where registered office of corporate person is located. This section is only important in that it locates Tribunal which has territorial jurisdiction in insolvency resolution processes against corporate debtors. So far as personal guarantors are concerned, Part III of Code has not been brought into force, and neither has S. 243, which repeals Presidency-Towns Insolvency Act, 1909 and Provincial Insolvency Act, 1920. Net result of this is that so far as individual personal guarantors are concerned, they will continue to be proceeded against under aforesaid two Insolvency Acts and not under Code. Indeed, by Press Release dated 28.08.2017, Government of India, through Ministry of Finance, cautioned that S. 243 of Code, which provides for repeal of said enactments, has not been notified till date, and further, that provisions relating to insolvency resolution and bankruptcy for individuals and partnerships as contained in Part III of Code are yet to be notified. Hence, it was advised that stakeholders w....