Personal guarantor insolvency procedure permits appointment of the Interim Resolution Professional without a pre-appointment hearing, with safeguards at report stage.

Under the insolvency framework for personal guarantors, the Adjudicating Authority first seeks nomination and appointment of a resolution professional after the application is filed, and the report is then considered for admission or rejection. The statutory scheme does not require a personal guarantor to be given notice or a right of audience before appointment of the Interim Resolution Professional. Fair procedure is preserved at the report stage, where the debtor can respond and the resolution professional may seek further information before the application is decided.

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Issues: Whether a personal guarantor is entitled to notice and a right of audience before appointment of the Interim Resolution Professional under the insolvency framework for personal guarantor insolvency applications.

Analysis: The application was filed under the statutory scheme governing insolvency resolution of personal guarantors. The sequence under the relevant provisions shows that, after filing of the application, the Adjudicating Authority is required to seek nomination and appointment of a resolution professional, whose report is then considered for admission or rejection of the application. The statutory scheme does not contemplate a pre-appointment hearing for the personal guarantor. The provisions also provide safeguards at the report stage, including the debtor's opportunity to respond and the resolution professional's power to seek further information, which satisfies the requirement of fair procedure.

Conclusion: No notice or right of audience is required to be given to the personal guarantor before appointment of the Interim Resolution Professional, and the application could proceed to appointment of the Interim Resolution Professional.

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