Section 95 personal guarantor proceedings barred by pending earlier application under the Insolvency and Bankruptcy Code

A subsequent Section 95 application against a personal guarantor is not maintainable where an earlier proceeding on the same statutory footing is already pending and the bar under Section 96 of the Insolvency and Bankruptcy Code applies. The appellate tribunal followed its earlier view on identical facts, held that the later application could not be entertained as infructuous, and rejected the challenge to the impugned order. The pending insolvency proceedings were left to continue, with a request for expeditious disposal before the Tribunal.

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Issues: Whether the appeal challenging dismissal of the Section 95 application as infructuous called for interference, where similar proceedings concerning the personal guarantor were already pending and the bar under Section 96 of the Insolvency and Bankruptcy Code applied.

Analysis: The appeal was disposed of consistently with the earlier decision on an identical question arising from similar facts. It was noticed that a prior Section 95 proceeding against the personal guarantor was already pending, and the earlier appeal had been dismissed on the basis that a subsequent application could not be entertained in view of the statutory bar under Section 96.

Conclusion: The challenge to the impugned order was rejected and the appeal was dismissed.

Final Conclusion: The dismissal of the application and the appeal left the pending insolvency proceedings to continue, with a request for expeditious disposal before the Tribunal.

Ratio Decidendi: A subsequent Section 95 application against a personal guarantor is not maintainable where earlier proceedings on the same statutory footing are already pending and attract the bar under Section 96 of the Insolvency and Bankruptcy Code, 2016.

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