Rethinking 'Third-Party Security Providers’ Liability Under the IBC

Post introduction of the new insolvency regime in India under the Insolvency and Bankruptcy Code, 2016 (“IBC”), a lot has been discussed and debated on the extent of liability of a third-party security provider when a borrower is dragged into the insolvency resolution process (CIRP) proceedings under the IBC. Archana Tewary and Ananda Chakravarty share their insights in light of a recent judgment of the Hon’ble Supreme Court in ‘Phoenix Arc Private Limited vs. Ketulbhai Ramubhai Patel