Can NCLT reject insolvency petition filed u/s 94 of IBC, if Personal Guarantor is not in a position to bear the expenses of the insolvency resolution process and is not in a financial position to submit any repayment plan? – Vijender Antil (Personal guarantor of Jungrele Info Solutions Pvt. Ltd.) Vs. Phoenix ARC Pvt. Ltd. and Ors. – NCLAT New Delhi

The Hon’ble NCLAT held that in the present case, the Resolution Professional (RP) in his addendum report, found that the Personal Guarantor is not in a position to bear the expenses of the insolvency resolution and is not in a financial position to submit any repayment plan, therefore, the Tribunal has rightly rejected the application filed by the appellant on the report submitted by the RP under Section 99 of the Code.

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If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

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