Personal guarantor insolvency begins with interim moratorium and appointment of a resolution professional for statutory inquiry.

On an application under section 95(1) of the Insolvency and Bankruptcy Code, 2016, interim moratorium begins on filing under section 96(1)(a) in the personal guarantor insolvency process. The Authority may appoint the proposed insolvency professional as resolution professional under section 97, subject to a valid authorisation for assignment. The resolution professional must then conduct the statutory inquiry and submit recommendations on admission or rejection within the section 99 timeline. The note therefore confirms the procedural sequence for personal guarantor insolvency applications: moratorium on filing, appointment of a resolution professional, and inquiry before admission decision.

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Issues: Whether, on an application under section 95(1) of the Insolvency and Bankruptcy Code, 2016, interim moratorium commences and a resolution professional can be appointed for conducting the inquiry under the personal guarantor insolvency framework.

Analysis: The application was filed under the personal guarantor insolvency provisions together with the relevant rules and regulations. On filing of the application, interim moratorium under section 96(1)(a) operates. The Authority also exercised its power under section 97 to appoint the proposed insolvency professional as resolution professional, subject to compliance with the requirement of a valid authorisation for assignment. The resolution professional was directed to undertake the statutory inquiry and submit recommendations on admission or rejection within the time contemplated by section 99.

Conclusion: Interim moratorium came into force, and the proposed insolvency professional was appointed as resolution professional for the statutory inquiry.

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