Valid invocation of personal guarantees sustained where demand, service, and prior notices established liability before Section 95 proceedings.

Personal guarantees were treated as validly invoked before Section 95 proceedings because the guarantee deed required a demand on the guarantor, and the invocation letter, recall notice, statutory demand notice, and recovery proceedings together showed that demand had been made and service was proved through dispatch to the last known address under the deed's service clause. The guarantors' admissions on invocation, recall, and DRT proceedings further supported that liability had been called upon before the applications were filed. The Resolution Professional's report was only recommendatory, and the Adjudicating Authority independently assessed the record before admitting the applications against the personal guarantors; that admission was upheld.

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Issues: Whether the personal guarantees were validly invoked before initiation of proceedings under Section 95 of the Insolvency and Bankruptcy Code, 2016, and whether the Adjudicating Authority correctly admitted the applications against the personal guarantors.

Analysis: The guarantee deed required a demand upon the guarantor, and the financial creditor relied on the invocation letter dated 26.11.2021, the recall notice dated 04.02.2022, the statutory demand notice dated 20.12.2022, and the recovery proceedings before the Debts Recovery Tribunal. The service clause in the guarantee deed treated dispatch to the last known address, supported by the creditor's certificate, as sufficient proof of service. The appellants also admitted the material facts relating to invocation, recall, and DRT proceedings. On the record, the notices and proceedings collectively established that the guarantors were called upon to discharge the liability under the guarantee before the Section 95 applications were filed. The report of the Resolution Professional was recommendatory, and the Adjudicating Authority had independently considered the material before admitting the applications.

Conclusion: The personal guarantees were validly invoked, the requirement of demand and service stood satisfied, and the admission of the Section 95 applications was upheld.

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