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Supreme Court Rules: Insolvency Protection Belongs to the Company, Not Its Promoters
Times of India·Tuesday, 28 July 2026
The Supreme Court has clarified that the shield provided under insolvency law protects the company itself — not the promoters or owners who ran it. This is a significant ruling on how India's insolvency framework is interpreted.
Why It Matters
This ruling matters to anyone who invests in businesses, lends money, or owns a company — it draws a clear line between a firm's legal protection and its founders' personal liability.
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