The National Company Law Tribunal (NCLT) Kolkata bench comprising Justice Bidisha Banerjee (Judicial Member) and Shri Balraj Joshi (Technical Member) has held that an application under Section 95(1) of the Insolvency and Bankruptcy Code (IBC) for initiating insolvency proceedings against a personal guarantor is not maintainable before the NCLT if no Corporate Insolvency Resolution Process (CIRP) or liquidation proceeding has been initiated or is pending against the Corporate Debtor.
Background Facts:
The Resolution Professional and the Financial Creditor preferred the application to seek initiation of Insolvency Process against the Respondent Personal Guarantor to Corporate Debtor under Section 99 and Section 95(1) of IBC…
