Petition under S. 95(1) of IBC is not maintainable against Personal Guarantor

The NCLT Kolkata Bench ruled that a petition under Section 95(1) of the Insolvency and Bankruptcy Code against a Personal Guarantor is not maintainable if no insolvency application has been filed against the Corporate Debtor. 

The Bench clarified that if the corporate debtor has been resolved or liquidated, leaving no scope for value maximization, the proceedings against the personal guarantor shift to recovery proceedings, not insolvency resolution. 

The Court emphasized that such cases should be pursued in recovery forums, not the NCLT, unless tied to ongoing insolvency or liquidation proceedings of the Corporate Debtor.