Insolvency Application against Personal Guarantor is Maintainable u/s 60(1) of IBC even in Absence of Pending CIRP against CD: NCLAT

The NCLAT has ruled that an insolvency application against a personal guarantor is maintainable under Section 60(1) of the Insolvency and Bankruptcy Code (IBC), even if there is no pending Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The case involved an application for insolvency proceedings against a personal guarantor to a corporate debtor, and the tribunal affirmed that such an application is permissible under the IBC. This ruling clarifies the scope of the IBC and extends its applicability to personal guarantors in insolvency cases.