Tribunal Grants Application for Insolvency Resolution Process with Interim-Moratorium

The Tribunal granted the application to initiate the Insolvency Resolution Process against the Personal Guarantor, triggering an interim-moratorium under the Insolvency and Bankruptcy Code, 2016. An Insolvency Professional was appointed as Resolution Professional to assess eligibility and make recommendations within a specified timeline. The Applicant's Counsel was directed to serve the order and documents on the Resolution Professional for compliance. The matter was listed for further proceedings, with the Tribunal's order requiring compliance with formalities for the issuance of a certified copy upon request.

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Issues:
Initiating Insolvency Resolution Process against a Personal Guarantor under the Insolvency and Bankruptcy Code, 2016.

Analysis:
1. The Tribunal considered an application filed under section 95(1) of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Insolvency Resolution Process against a Personal Guarantor for a Corporate Debtor, demanding a total debt of Rs.16,89,01,410.32.

2. The Applicant, a body corporate, extended credit facilities to the Corporate Debtor based on representations made by them. The Corporate Debtor and the Personal Guarantor failed to make payments as per the agreed terms, leading to the classification of loan accounts as NPA. The Corporate Debtor was admitted under CIRP, and a Resolution Plan was approved.

3. The Personal Guarantor had executed a personal guarantee in favor of the Applicant to secure repayment of the credit facilities. A demand notice was issued under the IB Rules, 2019, demanding payment along with interest and charges.

4. The Applicant sought the initiation of the insolvency resolution process against the Personal Guarantor, triggering the interim-moratorium under the IBC, 2016.

5. The Tribunal appointed an Insolvency Professional as Resolution Professional and directed them to file a declaration confirming eligibility. The Resolution Professional was tasked with making recommendations on the application within the specified timeline.

6. The Counsel for the Applicant was directed to serve the order and documents on the Resolution Professional for compliance. The matter was listed for further proceedings, and e-copies of the order were sent to all parties for information.

7. The Tribunal's order, dated June 27, 2022, directed compliance with formalities for the issuance of a certified copy upon request.

This detailed analysis covers the issues involved in the judgment comprehensively, outlining the legal proceedings and decisions made by the Tribunal regarding the initiation of the Insolvency Resolution Process against the Personal Guarantor under the Insolvency and Bankruptcy Code, 2016.

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