Court grants application against Personal Guarantor, triggers Interim Moratorium and appoints Resolution Professional

The court allowed the application against the Personal Guarantor, initiating the Interim Moratorium and confirming the appointment of the Resolution Professional to oversee the proceedings. The judgment was based on the analysis of the Personal Guarantee deed, default, and legal provisions under the I & B Code, ensuring compliance with relevant laws and regulations.

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Issues Involved:
1. Filing of petition under Section 95 of the I & B Code against a Personal Guarantor.
2. Default by the Personal Guarantor in fulfilling debt obligations.
3. Consideration of Personal Guarantee deed and demand notice.
4. Commencement of Interim Moratorium and its implications.
5. Appointment and powers of Resolution Professional.

Analysis:

1. The petition was filed under Section 95 of the I & B Code against a Personal Guarantor, who had provided a Personal Guarantee to the Corporate Debtor. The Resolution Professional (RP) filed the petition on behalf of the Creditor, seeking recovery of the outstanding debt.

2. The Bench noted that the Personal Guarantor had defaulted in fulfilling the debt owed to the Corporate Debtor as per the terms of the Personal Guarantee deed. Despite arguments from the Personal Guarantor, the Bench rejected their contentions and found a clear default.

3. The consideration of the Personal Guarantee deed and the demand notice issued by the Financial Creditor were crucial in establishing the default by the Personal Guarantor. The total debt owed, including interest, was clearly stated in the petition and formed the basis for the legal proceedings.

4. The Interim Moratorium was initiated from the date of filing the application by the Financial Creditor. This moratorium stayed any legal actions or proceedings related to the debt owed by the Personal Guarantor, providing protection to the assets and preventing creditors from initiating legal actions during this period.

5. The appointment of the Resolution Professional was confirmed by the Bench, emphasizing the critical role of the RP in managing the proceedings and safeguarding the interests of all parties involved. The RP was directed to exercise powers as per the Code and provide recommendations on the application within the stipulated time.

In conclusion, the judgment allowed the application against the Personal Guarantor, initiating the Interim Moratorium and confirming the appointment of the Resolution Professional to oversee the proceedings. The detailed analysis of the Personal Guarantee deed, default, and legal provisions under the I & B Code formed the basis for the decision, ensuring compliance with the relevant laws and regulations.

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