Personal guarantor insolvency process: interim moratorium applies on filing, and a resolution professional must examine the application.

An application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 against a personal guarantor may be entertained on the basis of loan documents, the personal guarantee, default particulars, prior claim filing before the corporate debtor's interim resolution professional, and service of statutory notice in Form B. On filing, interim moratorium under Section 96(1)(a) operates. The statutory process under Sections 97 and 99 then requires appointment of a resolution professional to examine the application and submit a report on acceptance or rejection. Consistently with that scheme, the application was taken on record and a resolution professional was appointed for further examination.

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Issues: Whether an application under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 for initiation of the insolvency resolution process against a personal guarantor could be entertained and, pending examination, whether a resolution professional could be appointed.

Analysis: The application was supported by the loan documents, personal guarantee, default particulars, prior filing of claim before the interim resolution professional of the corporate debtor, and service of the statutory notice in Form B. On filing of the application, the interim moratorium under Section 96(1)(a) came into operation. The proposed insolvency professional had accepted appointment and stated that no disciplinary proceedings were pending. The statutory scheme under Sections 97 and 99 was attracted for appointment of a resolution professional to examine the application and submit a report with reasons for acceptance or rejection.

Outcome: The application was taken on record, interim moratorium operated, and Mr. Amit Ojha was appointed as resolution professional for further examination under Section 99.

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