A Supreme court bench comprising of Justices L Nageswara Rao, Hemant Gupta & Ajay Rastogi has ordered for transfers of petitions across all High Courts pertaining to personal guarantors under the Insolvency and Bankruptcy Code.
In this matter, the plea was filed by IBBI seeking transfer on the ground of multiplicity of proceedings and to avoid conflicting judgments on account of pendency of similar issues across High Courts.
Senior Advocate Madhavi Divan was of the opinion that “it would be appropriate that the issues are decided by top court so that a common judgment can be passed on the issue”. Furthermore, Solicitor General Tushar Mehta, who appeared on behalf of the State Bank of India( petitioner) informed the Court that “the questions of law under consideration were of national importance not about the parties inter se and therefore, the Supreme Court would be an appropriate forum to decide on the same”.
This order came in light of a plea moved by Anil Ambani at the Delhi High Court challenging the validity of the provision of personal guarantee by taking the stand that IBC under Part III does not offer any such provision.