KSK Partner Navod Prasannan Highlights Structural Challenges in Personal Guarantor Recoveries

Commenting on the latest IBBI data on recoveries from personal guarantors, Navod Prasannan highlighted a structural concern within the IBC framework.

Speaking to Business Standard, Navod noted that the near-1% recovery rate against personal guarantors as of June 2026 lays bare a structural flaw in the IBC’s guarantor framework, rather than merely an implementation gap.

He further observed that this is largely because repayment plans under the framework are essentially debtor-proposed settlements rather than court-enforced obligations, leaving creditors with limited leverage to compel meaningful payouts.

Navod’s comments were featured in Business Standard’s article, “Recovery for lenders from personal guarantors picks up: IBBI data.”

Read the full article in Business Standard.

Last Updated on 1 September, 2026