This case involves a batch of writ petitions and transferred cases before the Supreme Court of India challenging the validity of a notification dated 15.11.2019 issued by the Central Government. The notification concerns the enforcement of certain provisions of the Insolvency and Bankruptcy Code, 2016 (IBC) specifically in relation to personal guarantors to corporate debtors. The petitioners, who are personal guarantors, argue that the notification is ultra vires the powers conferred upon the Union of India and violates the principles of delegation.
The key facts are as follows: A notification dated 15.11.2019 was issued by the Central Government enforcing certain provisions of the Insolvency and Bankruptcy Code (IBC) specifically for personal guarantors to corporate debtors. The petitioners, who are personal guarantors, challenged this notification, arguing it was ultra vires. These personal guarantors had furnished guarantees to banks and financial institutions, leading to the release of advances to companies they were associated with as directors, promoters, or chairmen. When these companies faced insolvency, the personal guarantees were invoked, leading to recovery and insolvency proceedings against the guarantors. The petitioners argued that the notification was an excessive delegation of power, as the
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The Insolvency and Bankruptcy Code, 2016 was…
The Central Government issued S.O. 4126(E)…
This case involves a batch of writ petitions and transferred cases before the Supreme Court of India challenging the validity of a notification dated 15.11.2019 issued by the Central Government. The notification concerns the enforcement of certain provisions of the Insolvency and Bankruptcy Code, 2016 (IBC) specifically in relation to personal guarantors to corporate debtors. The petitioners, who are personal guarantors, argue that the notification is ultra vires the powers conferred upon the Union of India and violates the principles of delegation.
The key facts are as follows: A notification dated 15.11.2019 was issued by the Central Government enforcing certain provisions of the Insolvency and Bankruptcy Code (IBC) specifically for personal guarantors to corporate debtors. The petitioners, who are personal guarantors, challenged this notification, arguing it was ultra vires. These personal guarantors had furnished guarantees to banks and financial institutions, leading to the release of advances to companies they were associated with as directors, promoters, or chairmen. When these companies faced insolvency, the personal guarantees were invoked, leading to recovery and insolvency proceedings against the guarantors. The petitioners argued that the notification was an excessive delegation of power, as the
…The Insolvency and Bankruptcy Code, 2016 was…
The Central Government issued S.O. 4126(E)…