Threshold Limit For Initiating Insolvency Process Against Personal Guarantors Shall be same of Corporate Debtor: NCLT [Read Order]

The IBC classifies individuals into three categories- personal guarantors to corporate debtors, partnership firms and proprietorship firms and other individuals to enable implementation of individual insolvency in a phased manner.
By Yogitha S. Yogesh - On April 2, 2025 11:13 am - 2 mins read
NCLT - NCLT insolvency - NCLT Chennai - Corporate debtor - Taxscan

The National Company Law Tribunal (NCLT) Chennai has held that the threshold limit for initiating the Personal Insolvency Resolution Process (PIRP) under Sections 94 or 95 of the Insolvency and Bankruptcy Code, 2016 (Code), shall be the same as that for a Corporate Debtor under Section 4 of the Code, i.e., ₹1 crore. Read More:…

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