The top court was hearing a huge batch of over 100 petitions challenging various provisions of the bankruptcy law that allow lenders to initiate insolvency proceedings against personal guarantors and promoters without giving them the opportunity to present their stand.
Various industrialist promoters including Anil Ambani, Venugopal Dhoot, Sanjay Singal, Kishore Biyani, and others claimed violation of their right to equality.
In a setback to promoter industrialists, the Supreme Court held the statute (IBC) does not suffer from any manifest arbitrariness to violate Article 14 of the Constitution.
SC rejects challenge to IBC provisions on personal guarantors – challenged by industrialists like Anil Ambani, Venugopal Dhoot and others.
(More to come)