New Delhi, Sept. 3 -- The ongoing controversy over Zee TV founder Subhash Chandra's personal liability under personal guarantees extended by him for loans taken by his Essel Group-linked firms has drawn into the limelight an arcane part of company law: the issue of personal guarantees in the context of credit extended to limited-liability companies, loosely referred to as 'corporates.'

While the final outcome of the case is awaited, given the mind-boggling sums involved (with claims worth thousands of crores admitted), it is sure to put the role of personal guarantees and guarantors under greater scrutiny.

Especially since a special bench of the National Company Law Tribunal has stayed an earlier NCLT order approving Chandra's Rs.6.5 cr...