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THE INSOLVENCY AND BANKRUPTCY CODE, 2016-THE TRANSFER OF PROCEEDINGS AGAINST GUARANTORS TO THE NATIONAL COMPANY LAW TRIBUNAL
The Insolvency and Bankruptcy Code, 2016 has now come into force. Under the new resolution mechanism, the National Company Law Tribunal has been made the adjudicating Authority for Insolvency Resolution and Liquidation for corporate persons including corporate debtors and personal guarantors.
The ‘personal guarantor’in respect of the corporate debtor has been defined under Section 5(22) and means any individual who is the surety in a contract of guarantee to a corporate debtor.