Breaking News
1. Joe Biden decides to pass on the torch to new generation      2. Wil Nifty Hold 24,200 on Monthly Expiry day      3. Kangana Ranaut’s Lok Sabha election from Mandi challenged      4. Early morning rain brings relief to Delhi      5. Nitish Kumar shouts at RJD MLA in Bihar Assembly, draws flak      6. Rouse Avenue Court extends judicial custody of Manish Sisodia and other accused till July 26      7. Supreme Court hearing NEET-UG issue      8. Singer Rahat Fateh Ali Khan arrested in Dubai: Reports      9. Assam CM Himanta Biswa Sarma meets PM Narendra Modi in Delhi      10. India needs to strike balance between import of goods and FDI inflows from China: CEA      11. INDIA bloc to convene meeting tomorrow      12. India's forex reserves surge to record high of $666.85 billion as of July 12      13. Hatred is in the veins of BJP: AAP MP Sanjay Singh      14. Union Home Minister Amit Shah chairs high level meeting with various Heads of Security and Law Enforcement Agencies      15. UP Vidhan Sabha session will begin from July 29      16. Indrani Mukerjea allowed 10-day abroad travel by special CBI court in Mumbai      17. Andhra Pradesh: Union Minister Nitin Gadkari visits Tirumala Venkateshwara Temple in Tirupati      18. Encounter breaks out in J-K's Doda      19. Moderate to heavy rain is expected in Mumbai, its suburbs today      20. Karnataka: Truck and tanker drivers stranded in Akola's Shirur due to landslide     

Supreme Court Verdict Spurs Promoters to Swiftly Settle Bank Debts

  • Posted on November 16, 2023
  • Legal
  • By TSW NEWS DESK
  • 304 Views

A recent Supreme Court ruling is shaking up the financial landscape for promoters tied to unpaid bank dues. The directive grants banks authority to sell personal assets, putting pressure on individuals connected to companies in insolvency. This decision aims to hasten the settlement of outstanding loans.

Supreme Court Verdict Spurs Promoters to Swiftly Settle Bank Debts Image Source -www.moneycontrol.com

In a significant turn of events, the Supreme Court's recent ruling has triggered a seismic shift in the financial realm, particularly impacting promoters involved in unresolved bank debts. This order has heightened the risk for these individuals, with their personal properties now at stake due to outstanding dues linked to companies.

The court's directive has stirred a swift response among promoters who previously sought to resolve their dues by having banks liquidate company assets, a time-consuming endeavor. However, with the new order in place, banks are empowered to promptly recover their dues by selling off the personal assets of these promoters, a game-changer in the debt recovery process.

The ruling has sparked anticipation that promoters, specifically those embroiled in insolvency proceedings, will hasten their efforts to settle their pending dues with banks. Fearful of losing personal assets, such as residential properties, shares, bonds, and valuable possessions like gold and jewelry, these individuals are expected to take proactive steps to repay bank debts.

Moreover, legal experts foresee a voluntary initiative from promoters and directors to clear their dues, fostering a climate for enhanced recovery from bad loans. Notably, the court's decision fortified the constitutionality of the Insolvency and Bankruptcy Code (IBC) provisions concerning personal guarantors, providing relief to financial institutions battling high-profile cases involving figures like Anil Ambani, Venugopal Dhoot, Kishore Biyani, and the Wadhawan brothers.

Also Read: Beware! Mohali's Rs 5 Trap Resulting In Rs 80,000 Loss: Courier Scam

Statistics from the Insolvency and Bankruptcy Board of India reveal a substantial volume of cases—2,289, to be exact—pertaining to personal guarantees associated with corporate loans, totaling Rs 1.64 trillion, filed in the National Company Law Tribunal. This development obliges personal guarantors to engage in negotiations and settlements with creditors, with experts suggesting limited recourse for promoters, given the clarity provided by the court's decision.

The Supreme Court's clear directives are expected to expedite settlements, preventing prolonged legal disputes and facilitating the resolution of pending loans between individual guarantors and banks. Ultimately, this move aims to streamline the resolution of outstanding debts, offering a framework for quicker settlements in the financial landscape.

Author
No Image
Author
TSW NEWS DESK

You May Also Like