SC dismisses plea seeking to direct PSBs to invoke personal guarantees of defaulters

New Delhi [India], September 22 : The Supreme Court on Tuesday dismissed a petition seeking directions for the public sector banks to invoke personal guarantees of the defaulters by attaching their private properties.
A bench of the apex court, headed by Justice Rohinton F Nariman, noted that as per the top court's earlier order, representation to the Ministry of Finance was made by the petitioner, and a reply was received so nothing in the petition survives.
The court had earlier asked the petitioners Saurabh Jain and Rahul Sharma to approach the Ministry with a representation.
The plea claimed that a whopping sum of about Rs 1,900 crores is lost on a daily basis merely because the public sector banks are failing to invoke personal bank guarantees furnished by big corporations.
It sought directions to the Union government and the Reserve bank of India (RBI) to direct invoking personal guarantees given by the promoters, directors, managerial personnel of large corporate houses which have defaulted in repaying loans advanced to them by such public sector banks (PSBs) amounting to approximately Rs 1,85,000 crores.
The plea sought the initiation of proceedings against such promoters, directors, managerial personnel for the recovery of the said loans.