CP(IB)-395/ND/2021-NCLT

Where an application in relation to the Corporate Debtor for initiation of CIRP is pending at NCLT then, initiation of CIRP of the Corporate Debtor is not a pre-requisite for maintainability of an application under Section 95 of the IBC, 2016 filed for initiating IR Process against the Personal Guarantor – PNB Housing Finance Ltd. Vs. Mr. Mohit Arora (Managing Director of Supertech Ltd.) – NCLT New Delhi Bench Court-II

The issue in this case is that whether initiation of the CIRP of the Corporate Debtor is a prerequisite for maintainability of an application under Section 95 of the IBC, 2016 filed for initiating IR Process of the Personal Guarantor of that Corporate Debtor before the NCLT?
The Adjudicating Authority held that in a situation where Application(s) in relation to the Corporate Debtor for initiation of CIRP is pending at NCLT then, initiation of CIRP of the Corporate Debtor is not a prerequisite for maintainability of an application under Section 95 of the IBC, 2016 filed for initiating IR Process against the Personal Guarantor of that Corporate Debtor before the NCLT. The moment the IB application in relation to Insolvency resolution of the Corporate Debtor is pending before this Adjudicating Authority, the provisions of Section 60(1) get attracted and the jurisdiction to entertain insolvency process against the personal guarantor would, therefore, lie with the NCLT.

Where an application in relation to the Corporate Debtor for initiation of CIRP is pending at NCLT then, initiation of CIRP of the Corporate Debtor is not a pre-requisite for maintainability of an application under Section 95 of the IBC, 2016 filed for initiating IR Process against the Personal Guarantor – PNB Housing Finance Ltd. Vs. Mr. Mohit Arora (Managing Director of Supertech Ltd.) – NCLT New Delhi Bench Court-II Read Post »

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