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2019 (10) TMI 1434 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Corporate Debtor is Non-Banking Financial Company (NBFC) or not - Financial Service Provider to be included in the definition of 'Corporate Person' or not - Financial Creditors - existence of debt and dispute or not - HELD THAT:- The undisputed fact is that the Corporate Debtor is a Guarantor in respect of the loan given to the Principal Borrower ws Amrit Jal Ventures Private Limited. The Financial creditor already filed a petition under Section 7 of IBC against Principal Borrower which was admitted. The fact that petition was filed against Borrower is not in dispute and CIRP started against the Principal Borrower. It is also not in dispute that the Financial Creditor filed a claim before IRP/RP appointed for the Principal Borrower - The question whether Financial Creditor can file a separate petition against the guarantor for the same financial debt which was stated to have been committed default by the Principal Borrower. The Financial Creditor can proceed against the guarantor. There is no restriction on the right of Financial Creditor to proceed against guarantor provided if financial creditor had not initiated any action against the Principal Borrower - Therefore, the Financial Creditor is not entitled to file again an Application for the same financial debt on the ground of default against the Guarantor. Whether proceedings cannot be initiated against Corporate Debtor as it is not "Corporate Person" within the meaning of Section 3 (20) of IBC? - HELD THAT:- It is true, except letter and reply, Corporate Debtor has not filed any authorization or registration given by RBI recognising Corporate Debtor as financial service provider. Therefore, the Corporate Debtor cannot take any protection on the ground that it is NBFC and objects of the Company is also to do financial services - present petition filed by Financial Creditor is not maintainable against Corporate Debtor as Financial Creditor already initiated proceedings against Principal Borrower. Petition dismissed.
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