Independent consideration under insolvency law requires reasoned review of guarantor objections before admitting proceedings.

Under Sections 99 and 100 of the Insolvency and Bankruptcy Code, the adjudicating authority must independently consider the resolution professional's report and the personal guarantors' objections before deciding whether to admit the insolvency application. The report is only recommendatory, and no judicial determination arises until the authority applies its own mind at the Section 100 stage in observance of natural justice and with reasons. As the impugned orders relied substantially on the report without specific findings on the objections or the mandated independent exercise, they were found not to comply with the statutory procedure and were liable to be set aside.

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Issues: Whether the orders admitting the personal guarantors to insolvency resolution proceedings under Section 100 of the Insolvency and Bankruptcy Code, 2016 were sustainable when the adjudicating authority had not independently dealt with the report under Section 99 and the guarantors' objections.

Analysis: The appeal concerned the stage at which the adjudicating authority must apply its mind under Sections 99 and 100 of the Insolvency and Bankruptcy Code, 2016. The report of the resolution professional is only recommendatory in nature, and no judicial determination arises until the adjudicating authority decides whether to admit or reject the application under Section 100. The decision-making stage requires observance of natural justice and a reasoned consideration of the material before the authority. The impugned orders were found to have relied substantially on the resolution professional's report without recording specific findings on the appellants' objections or undertaking the exercise mandated at the Section 100 stage.

Conclusion: The impugned orders did not comply with the statutory procedure and the binding directions governing Section 100 consideration, and were liable to be set aside.

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