In the present case, the CIRP proceedings against the Corporate Debtor were pending on the date when the petition was filed before the Adjudicating Authority by the Financial Creditor and on the date when the impugned order came to be passed, as on date, they continued to be pending.
NCLAT Chennai Bench held that:
(i) It cannot be gainsaid that the pendency of the CIRP proceedings, against the Corporate Debtor is not a condition precedent for initiation of insolvency proceedings against the Personal Guarantor. Therefore, it is crystalline clear that the insolvency proceedings can be initiated against the Personal Guarantor of a Corporate Debtor, even if, no insolvency proceedings are pending against the Corporate Debtor.
(ii) It is well settled by now, that the insolvency Proceedings can be initiated against the Personal Guarantor, even when no proceedings are pending against the Corporate Debtor.
(iii) And concluded that the Adjudicating Authority has jurisdiction to entertain/initiate the insolvency proceedings of the Personal Guarantors even when no CIRP proceedings is pending against the Corporate Debtor and in any event, the CIRP proceedings is pending and continued to be pending, against the Corporate Debtor.