Limitation and maintainability objections in personal insolvency proceedings must be examined first before appointing a Resolution Professional.

Proceedings under Section 95 of the Insolvency and Bankruptcy Code, 2016 concerning personal guarantors were remanded because the Adjudicating Authority had not first dealt with the foundational objections of limitation and maintainability to the application for appointment of a Resolution Professional. The High Court noted competing submissions on acknowledgments, revival letters and alternate remedy, but did not enter the merits of those issues. It held that the National Company Law Tribunal should examine limitation and maintainability in the first instance, so the impugned order was sent back for fresh consideration on those objections.

---

---

Issues: Whether the order appointing the Resolution Professional in proceedings under Section 95 of the Insolvency and Bankruptcy Code, 2016 could be sustained without consideration of the petitioners' objections on limitation and maintainability, and whether the matter should be remanded to the Adjudicating Authority for fresh consideration of those objections.

Analysis: The petitions challenged the order appointing a Resolution Professional in personal insolvency proceedings against the petitioners as personal guarantors. The principal objection raised was that the Section 95 application was barred by limitation and was otherwise not maintainable, and that these foundational objections had not been dealt with in the impugned order. The Court noted the competing submissions on limitation, the effect of acknowledgments and revival letters, and the question of availability of an alternate remedy. Without entering into the merits of those contentions, the Court found it appropriate that the Adjudicating Authority should first examine the objections regarding limitation and maintainability.

Conclusion: The impugned order was not interfered with on merits, but the matter was remanded to the National Company Law Tribunal to consider the objections relating to limitation and maintainability under Section 95 of the Insolvency and Bankruptcy Code, 2016.

---