Skip to content
Free updates Login
BankingUPSC & State PSCNABARD / RBI

IBBI Regulation 17B: Personal Guarantor Repayment Plan Rule

28 May 20251 min read
BANKING & FINANCEIBBI Regulation 17B:Personal GuarantorRepayment Plan Rule28 May 2025safalsetu.com

Why in the news

IBBI added Regulation 17B to make personal guarantors accountable and avoid resolution delays.

Key facts

  • If no plan comes under Section 105, the RP applies to NCLT with creditors’ approval, reports the non-submission and seeks directions.
  • Fills a gap: older rules were silent on this situation.
  • NCLT may issue time-bound directions or start bankruptcy proceedings.

Legal timeline

ItemDetail
Guarantor frameworkEffective December 2019; runs alongside CIRP
Supreme Court2021 ruling validated coverage under IBC
Regulation 17A2024; presumes plan submission, presented at creditors’ meetings

Exam angle

  • Regulation 17B (IBBI) and Section 105.

Test yourself

1. Which IBBI regulation requires RPs to inform NCLT when a personal guarantor does not submit a repayment plan?

Regulation 17B introduces the notification duty.

2. Under which IBC section is a personal guarantor's repayment plan submitted, as referred to in Regulation 17B?

Regulation 17B applies when no plan is submitted under Section 105.

3. Since when has the personal guarantor insolvency framework been in effect?

The notes state it has been effective since December 2019.

This topic is part of Daily Current Affairs 26 & 27 May 2025 (23 topics).

All topics of the dayDay quizMay 2025

Read more