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2018 (8) TMI 1037 - AT - Insolvency and BankruptcyCorporate insolvency resolution process - Corporate Debtor - locus standi of the person - personal guaranter - Held that:- Adjudicating Authority is only to satisfy that the default has occurred and that the ‘Corporate Debtor’ is entitled to point out that the default has not been occurred in the sense that the debt is not due. No other person has a right to be heard at the stage admission of the application under Section 7 and 9 of the I&B Code including the ‘shareholders’ or the ‘personal guarantor’ etc.. With regard to a ‘personal guarantor’ of ‘Corporate Debtor’, insolvency resolution or bankruptcy can be filed but before the same Adjudicating Authority (National Company Law Tribunal) where application against ‘Corporate Debtor’ is pending in terms of subsection (2) of Section 60. In such case ‘personal guarantor’ may claim his right of hearing, which is filed against ‘personal guarantor’ and he may also address the Adjudicating Authority, if it is ‘corporate insolvency resolution process’ pending against the ‘Corporate Debtor’. The Adjudicating Authority having failed to notice the aforesaid provision - Now it is only the ‘Corporate Debtor’ is to be heard, who is represented through the Board of Directors and the ‘Financial Creditor’ and no other person such as ‘shareholders’ or the ‘personal guarantor’. However, after the order of admission or rejection is passed, it is always open to the aggrieved person to move in appeal.
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