Which of the following statements is/are correct with reference to the Indian Bankruptcy and Insolvency Code (IBC)?
A. Supreme Court upheld a government move to allow lenders to initiate insolvency proceedings against personal guarantors.
B. Section 60(2) of the Code had required the bankruptcy proceedings of corporate debtors and their personal guarantors to be held before a common forum.
C. Both A & B
D. None of these
Explanation:
The Supreme Court recently upheld a government move to allow lenders to initiate insolvency proceedings against personal guarantors, who are usually promoters of big business houses, along with the stressed corporate entities for whom they gave guarantee. Section 60(2) of the Code had required the bankruptcy proceedings of corporate debtors and their personal guarantors to be held before a common forum — the NCLT.
