The Insolvency and Bankruptcy Code (Amendment) Act, 2026 has introduced Section 28A into Insolvency and Bankruptcy Code (Code), 2016.

This section envisages an asset-transfer framework to pool the assets of the personal or corporate guarantors into the corporate insolvency resolution process (CIRP) of the corporate debtor (CD). However, when examined specifically with respect to transfer of assets of a personal guarantor (PG), the framework potentially disadvantages and undermines valuable rights of not just the weaker secured creditors but also of these guarantors themselves.