Introduction

Personal guarantees occupy a critical but often misunderstood space within the Indian insolvency framework. A common assumption among borrowers and even legal practitioners is that a personal guarantor bears only a secondary obligation, one that is triggered only after all remedies against the principal borrower have been exhausted. In practice, however, this perception is far from accurate, and the Insolvency and Bankruptcy Code, 2016 ("IBC") has established a robust and independent regime for dealing with personal guarantors.