In Personal Guarantors Insolvency, question of default will be decided by Adjudicating Authority while passing order under Section 100 of the IBC – Pramod Kumar Mittal Vs. UCO Bank – NCLAT New Delhi
Learned Counsel for the Bank submits that Personal Guarantor has not filed any Reply before the Adjudicating Authority(AA) and without filing any Reply before the AA this Appeal was filed by the Personal Guarantor.
NCLAT held that the Application has not yet been admitted or rejected under Section 100 of Code, 2016. The stage has not yet come therefore it shall be open for the Personal Guarantor to raise all the issues regarding the admissibility of the Application. Further it held that any observations in the AA’s Order need not be treated any finding of the default of the Personal Guarantor, Adjudicating Authority shall independently shall consider the question of default while passing order under Section 100 of the IBC.