Bar on Personal Guarantors as Resolution Applicants under IBC: Understanding the Implications of Invoking Guarantee – By Adv. Yash Gupta and Adv. Nitish Gajraj

The IB Code has undergone several amendments since its inception, and one such amendment that has been introduced is the insertion of Section 29A, which has garnered considerable attention and criticism alike. Further, a specific provision was included in Sub-Section (h) of Section 29A to address the eligibility of Guarantors to Corporate Debtor (CD). This Sub-Section aims to disqualify any "person" who has provided a personal guarantee to a creditor from becoming a resolution applicant once the creditor invokes their personal guarantee. This article aims to discuss Section 29A of the IBC concerning the ineligibility of personal guarantors as a resolution applicant.