Commencement of CIRP against the Corporate Debtor is not a condition precedent for maintaining an application under Section 95 of the IBC, 2016 filed for initiating IR Process against the Personal Guarantor of the Corporate Debtor before the NCLT– NCLT New Delhi Bench Court-II

The Adjudicating Authority held that where the application for intiating the CIR process against the Corporate Debtor is pending, then in such a situation, initiation of the CIRP of the Corporatre Debtor is not a pre-requisite for maintainability of an application under section 95 of the IBC, 2016 filed for initiating Insolvency Process against the personal guarantor of the Corporate The moment the IB application in relation to the insolvency resolution of the Corporatre Debtor is pending before theAdjudicating Authority, the provisions of sec 60 (1) gets attracted and the jurisdiction to entertain insolvency process against the personal guarantor, would therefore, lie with the NCLT.

Branch: NCLT, New Delhi Bench

Link: https://ibclaw.in/pnb-housing-finance-ltd-vs-mr-mohit-arora-managing-director-of-supertech-ltd-nclt-new-delhi-bench-court-ii/