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India – Closing The Interim Stay Trap: How The 2026 IBC Amendment Has Rebalanced Personal Guarantor Risk.
['Rohin Pujari']
Conventus Law
A notice then arrives attaching an NCLT e-filing receipt for a personal insolvency application.
A promoter who obtains months of inactivity gains negotiating space, while the lender absorbs provisioning, legal cost and declining recovery value.
Investors, resolution applicants and auditors assess whether recovery value can be identified, defended and realised within a credible timeframe.
A rushed counter-filing creates a different form of lock-in and must be assessed against the amended statutory and regulatory position on personal guarantor proceedings.
The lender may initiate personal insolvency to regain control, only to affect auctions or attachments involving other debts and assets.