Personal guarantor insolvency proceedings turn on proof of default, valid invocation, and immediate interim moratorium on filing.

An application under section 95 of the Insolvency and Bankruptcy Code against a personal guarantor is supported where the guarantee deed, invocation notice, demand notice, proof of service, and no response from the guarantor show a subsisting default in payment of the guaranteed debt. The text states that, once the procedural requirements for initiation against the personal guarantor are satisfied and the application is filed by an authorised resolution professional, the interim moratorium starts from the date of filing and the resolution professional is confirmed to conduct the inquiry and submit the report under the Code.

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Issues: Whether the application under section 95 of the Insolvency and Bankruptcy Code, 2016 against the personal guarantor was maintainable and fit to be allowed, and whether the interim moratorium and appointment of the resolution professional followed.

Analysis: The application was supported by the deed of guarantee, invocation of the guarantee, demand notice, proof of service, and the absence of any response from the personal guarantor. The record showed a subsisting default in discharge of the guaranteed debt. The petition was filed through an authorised resolution professional, and the requirements under the insolvency framework for initiating proceedings against a personal guarantor were satisfied. In consequence, the interim moratorium commenced from the date of filing of the application, and the resolution professional's appointment was confirmed for the purposes of inquiry and report under the Code.

Conclusion: The application under section 95 was allowed, the interim moratorium took effect, and the resolution professional was confirmed to proceed in accordance with the Code.

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