Limited notice in personal guarantor insolvency proceedings is sufficient before RP appointment; objections arise only at the Section 100 stage.

In personal guarantor insolvency proceedings, service of the Section 95 application in Form C was treated as sufficient limited notice at the pre-Resolution Professional stage to secure appearance and inform the interim moratorium. The Tribunal held that no separate notice of listing was required before appointment of the Resolution Professional, because the statutory scheme does not contemplate adjudication on merits or a hearing to the debtor at that stage. Preliminary objections and challenges to maintainability are to be raised after the Resolution Professional's report, at the Section 100 stage. The recall application was therefore rejected as premature, and objections sought to be raised immediately were not entertained.

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Issues: Whether the application seeking recall or setting aside of the order reserving the matter ex parte was maintainable on the ground that no separate notice of listing was issued and whether objections to the Section 95 proceedings could be raised at that stage.

Analysis: The Tribunal followed the principle that, in personal guarantor insolvency proceedings, service of the application in Form C constitutes limited notice sufficient to secure the appearance of the personal guarantor and to inform the commencement of interim moratorium. It noted that the statutory scheme contemplates no adjudication on merits, and no hearing to the debtor, before appointment of the Resolution Professional. The stage for raising disputes and preliminary objections arises after the Resolution Professional submits the report and the matter reaches the Section 100 stage. In these circumstances, the plea for recall based on absence of a separate hearing notice was treated as premature, and entertaining objections at that point would amount to a prohibited double hearing.

Conclusion: The application for recall or setting aside of the order dated 10.08.2021 was not allowed, and the request to raise preliminary objections at that stage was rejected as premature.

Final Conclusion: Limited notice on filing of the Section 95 application was held sufficient at the pre-Resolution Professional stage, and objections to maintainability were held to be reserved for consideration after the Resolution Professional's report under Section 100.

Ratio Decidendi: In personal guarantor insolvency proceedings, service of the Section 95 application provides sufficient limited notice before appointment of the Resolution Professional, and objections on merits or maintainability cannot be adjudicated until the Section 100 stage.

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