The NCLAT made the observation while dismissing an appeal by a personal guarantor who had challenged a May 1 NCLT order to appoint a resolution professional (RP).
By this order, the NCLT had asked the RP to examine an application to initiate CIRP against a personal guarantor of Supertech Limited, which had defaulted on some loans. The RP was ordered to submit a report on the matter under Section 99 of the IBC.
This May 1 order was passed on an application under Section 95 (application by creditor to initiate insolvency resolution process, in respect of personal guarantors) of the IBC by a financial creditor, IFCI Bank Ltd. The application was filed on June 2, 2021, and registered on August 9, 2021.
Notably, another financial creditor, PNB Housing Finance Limited (PNBHFL), filed a similar application about a month later, on July 14, 2021. However, this application was registered on August 2, 2021, which was before IFCI’s application was registered.
On May 1 this year, the NCLT appointed an RP to examine if the insolvency proceedings against the personal guarantor should be taken forward.
Source: Barandbench
