Notice not to be given to Personal Guarantor before appointment of IRP

Central Bank of India Vs Kothapatti Raju (NCLT Amaravati)

NCLT Amaravati held that no notice is required to be given to the Personal Guarantor at the stage of appointment of Interim Resolution Professional (IRP).

Facts-

The Corporate Debtor/Respondent No.2 has availed various credit facilities a total sum of INR 33,18,09,761.02/- from the Petitioner/Financial Creditor from time to time. Respondent No.1 stood as a Personal Guarantor to the credit facilities availed by the Corporate Debtor/Respondent No.2.

The Corporate Debtor/Respondent No.2, after availing the aforesaid credit facilities, violated the terms and committed default in repaying the debt amount.

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