Personal Guarantor's Insolvency Approved Under Section 94(1) of IBC Despite No Ongoing CIRP Against Corporate Debtor

The Tribunal admitted an application under Section 94(1) of IBC against a Personal Guarantor despite no ongoing CIRP or liquidation against the Corporate Debtor. The Resolution Professional's report confirmed undisputed debt of Rs. 9.63 Crore, default by the Personal Guarantor, and valid invocation of guarantee through Demand Notices under SARFAESI Act and Form-B notice by Canara Bank, which remained uncontested. The Tri determined that all conditions under Section 100 of IBC were satisfied, as the guarantor failed to provide evidence of payment or cancellation of guarantee. The application was found maintainable, and the Insolvency Resolution Process was initiated against the Personal Guarantor. .....

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