The IBC does not contemplate multiplicity of applications against the same Personal Guarantor, when the Insolvency Resolution Process commences against a Personal Guarantor, claims of all Creditors are taken care – Union Bank of India Vs. Mr. P.K. Balasubramanian – NCLAT Chennai
Issue in this case that Section 95 Application was filed by Appellant/Union Bank of India three days prior to the date when the State Bank of India had filed their Application and therefore their Application ought to have been admitted first.
NCLAT held that indeed, the date of filing of the application under Section 95 is what is to be taken into account and not the date when the application is numbered. There is no appreciable evidence on record to state that the said application was defective. When an Insolvency Resolution Process commences against the Personal Guarantor, all Creditors of the Personal Guarantor are taken care of in the proceedings under Chapter-III. The Code does not contemplate multiplicity of applications against the same Personal Guarantor. This Tribunal is of the earnest view that when the Insolvency Resolution Process commences against a Personal Guarantor, Claims of all Creditors are taken care of under the scheme of the I & B Code, 2016.
