Substitution of financial debt assignee upheld in insolvency proceedings against personal guarantors after valid assignment and no objection

An assignee of financial debt may be substituted for the original financial creditor in pending insolvency proceedings against personal guarantors where the debt has been validly assigned and the original creditor raises no objection. The assignment was treated as transferring the right to recover dues and to continue enforcement proceedings, and no prejudice to the personal guarantors was shown. On that basis, the substitution application was held maintainable under the applicable insolvency and tribunal rules, and the assignee was permitted to prosecute the pending proceedings in place of the original creditor.

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Issues: Whether the assignee of the financial debt could be substituted in place of the original financial creditor and permitted to continue the pending insolvency proceedings against the personal guarantors.

Analysis: The debt had been assigned to the applicant under an assignment agreement, and the original financial creditor confirmed that it had no objection to substitution. The assignment was treated as carrying with it the rights to recover the dues and to continue enforcement proceedings, and no prejudice to the personal guarantors was shown. In these circumstances, the application for substitution was found maintainable under the applicable insolvency and tribunal rules.

Conclusion: The applicant was entitled to be substituted in place of the original financial creditor and to continue prosecuting the pending proceedings against the personal guarantors.

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