The NCLAT also stressed that Section 60(2) of the IBC requires insolvency proceedings against a personal guarantor to be filed before the same NCLT where the CIRP or liquidation of the corporate debtor is pending. It said that the provision is intended to consolidate proceedings and avoid conflicting decisions.
In this case, the Tribunal held that NCLT New Delhi lacked territorial as well as inherent jurisdiction to continue the Section 95 proceedings against Singla. The NCLAT also said that the personal guarantor proceedings should have been rejected as non-maintainable at the admission stage itself and the creditor should have been asked to approach NCLT Chandigarh instead.
The Appellate Tribunal consequently set aside the NCLT…