2021 (10) TMI 1374 - Tri - Insolvency and Bankruptcy

Maintainability of application - seeking initiation of Insolvency Resolution Process against the guarantor - section 95(1) of the Insolvency and Bankruptcy Code 2016 - HELD THAT - As on date no CIRP or Liquidation process is pending against the Corporate Debtor because of approval of the Resolution Plan. Section 60(2) of the Code requires that for an Insolvency Resolution Process to be initiated against the guarantor there must be CIRP or Liquidation process is pending against the principal borrower/Corporate Debtor. Since that requirement is not satisfied in the present case at this point of time petition is premature and is dismissed as such.

Summary

The Tribunal dismissed the application seeking initiation of insolvency resolution process against the guarantor as there was no pending CIRP or Liquidation process against the Corporate Debtor due to approval of the Resolution Plan. The petitioner was granted liberty to initiate appropriate proceedings in accordance with the law.