Is it required to issue notice to Personal Guarantor while passing order under Section 115(2) of IBC when the Personal Guarantor did not submit Repayment Plan | Is Regulation 19 of Personal Guarantors Insolvency Regulation 2019 applicable even no Repayment Plan is submitted by Personal Guarantor – Sudip Dutta @ Sudip Bijoy Dutta Vs. Prashant Jain RP – NCLAT New Delhi
Hon’ble NCLAT held that:’
(i) The Personal Guarantor kept silence for years together and when consequential Order under Section 115 has been passed by the Adjudicating Authority, he is raising grievance of not being heard by the Adjudicating Authority.
(ii) Regulation 19 is not applicable in the facts of the present case nor Personal Guarantor can rely on Regulation 19.
(iii) No Repayment Plan having been submitted or finalised, Adjudicating Authority has not committed any error in giving liberty to the Creditors to file an Application for Bankruptcy under Chapter IV, which is a statutory consequence under Section 115(2). In so far as discharge of the RP is concerned, the discharge is also consequential to completion of Insolvency and Bankruptcy Process against the Personal Guarantor under the provisions of Chapter III of the Code.