IBBI and Courts Settle the Issue of Applicability of Interim Moratorium for a Personal Guarantor of a Corporate Debtor

IBC Act, 2026 introduced sub-section (4) into Section 96 of the IBC Code, 2016 excluding personal guarantors to corporate debtors from the protection of the interim moratorium that automatically arises on the filing of an application to initiate insolvency resolution proceedings under Section 94 or Section 95.