Personal guarantor insolvency proceeds where guarantee, debt, default and demand notice are established despite corporate debtor insolvency.

Insolvency resolution against a personal guarantor may proceed where the guarantee is admitted, its terms permit creditor recourse, and the Resolution Professional establishes subsisting debt, default and service of demand notice. Unsupported claims of repayment do not negate the default. A possible settlement and the pending insolvency process of the corporate debtor do not displace the basis for action against the guarantor. On these facts, the application for initiation of insolvency resolution process against the personal guarantor was admitted.

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Issues: Whether the application for initiation of insolvency resolution process against the personal guarantor was liable to be admitted.

Analysis: The personal guarantor admitted execution of the deed of guarantee and the unconditional terms authorising recourse by the creditor. The Resolution Professional's report established the subsisting debt, default, service of demand notice and absence of substantiation for the asserted repayments. The proposed possibility of settlement and pendency of the corporate debtor's insolvency process did not displace the established basis for proceeding against the guarantor.

Conclusion: The application was fit for admission, and insolvency resolution process against the personal guarantor was initiated.

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