New Delhi :  The Supreme Court upheld the amendment to the Bankruptcy Code. However, a top court bench comprising Chief Justice DY Chandrachud, Justice JB Pardiwala and Justice Manoj Mishra on Thursday accepted the need to review some sections of the new bankruptcy rules. 

However, the three-judge bench on the whole did not agree to call the new bankruptcy rules ‘arbitrary’. Cases of a total of 391 petitioners, including Surendra B Jivaraj, were heard together in the apex court. Incidentally, the Supreme Court refused to accept the allegations that the rule was against the ‘fundamental rights’, ‘right to fair trial’ and ‘right to livelihood’ of the Indian Constitution.

The amendment to the Bankruptcy Code introduced by the Narendra Modi government said that, if necessary, action can be taken under the Bankruptcy Act against the guarantor of the debtor. Even after the approval of the revival plan of the ailing and insolvent company, the guarantors of the said loan will not be relieved of their liability. The Supreme Court had already dismissed the objection.