Completion of CIRP against principal debtor doesn’t bar financial creditor against personal guarantor

State Bank of India Vs Ghanshyam Surajbali Kurmi (NCLT Hyderabad)

Held that conclusion of Corporate Insolvency Resolution Plan against principal debtor does not bar Financial Creditor against Personal Guarantor. Accordingly, personal guarantor declared insolvent and insolvency resolution process initiated against him.

Facts-

This petition is filed by State Bank of India (Hereinafter referred as Financial Creditor) under Section 95(1) of Insolvency of Bankruptcy Code, 2016 (Hereinafter referred as Code) read with Rule 7 (2) of the Insolvency & Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019, seeking an order for initiation of the Insolvency Resolution Process (“IR Process”) against Shri. Ghanshyam Surajbali Kurmi/Debtor who is the Personal Guarantor of Apex Drugs Limited/ Respondent No. 1 herein.

Conclusion-

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