Under the IBC, enforcing personal guarantee remains a tall order

Insolvency law experts say that invoking personal guarantees goes against the spirit of the IBC

As lenders scramble to invoke promoter guarantees against corporate debtors with little success, government officials say a corporate insolvency resolution process is not over till the insolvency of the personal guarantor is also resolved.
 

The law may have enabled lenders to invoke personal guarantees against corporate debtors. In practice, however, it is proving to be much more difficult, with several grey areas leaving to interpretation issues such as the correct timing of such a move as well as the amount that can be claimed through this provision.
 

The provision for the insolvency resolution of personal guarantors was enabled in November