Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + Tri Insolvency and Bankruptcy - 2019 (5) TMI Tri This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 986 - Tri - Insolvency and BankruptcyCorporate insolvency process - outstanding debt - Acquisition of financial assets related to corporate debtor by Standard Chartered Bank is defective, illegal and bad in law - application under the IBC 2016 deserves to be rejected on ground and the alleged claims of financial creditor are based on aforesaid deed of assignment which assigns the defective and illegal rights - prescribed procedure under Section 7(5) of the IB Code HELD THAT:- we do not find substance in the objection of the Corporate-Debtor with regard to the assignment of debt by the State Bank of India to the Standard Chartered Bank and further to the present Financial-Creditor. We are of the view that even assuming so that the Standard Chartered Bank was not registered under the SARFAESI Act nor having license to business of ARCs in India being registered with the RBI, there can be no bar for assignment and transfer of the debt by the Principle Lender to another bank or to a financial institution for enforcing/recovery of such debt as per the above decision of the Hon’ble Supreme Court, that a debt is an asset in the hand of the bank/lender and NPAs are accounts receivable are treated as NPA. A Bank can always transfer its assets and such transfer (of its debts) and it no manner affect the right or interest of the borrowers. There is no prohibition in the Bank Regulation Act to the bank transferring its assets inter-se nor it can be said the bank are trading in debts. Therefore, such objection of the Respondents in respect of maintainability of the present petition are not legally sustainable; hence is rejected. Procedure under Section 7(5) of the IB Code - The objections raised by the Corporate-Debtor are not legally sustainable in the eyes of Law, as we found that the Corporate Debtor is taking contradictory stands which amount approbate and reprobate on some facts and conditions which not permissible in the eye of the Law. It is also found that clarification as sought for by this Bench by its order dated 19.11.2018 is properly answered and stands satisfied through affidavit of Mr. Nishith Doshi annexing with letter of authority of December, 2018 and other documents. Therefore, it is established that the Corporate Debtor has admitted the amount of debt due to the present applicant to the extent of ₹ 16.5 Crores and further issued cheque for amount of ₹ 2.65 Crores; which are defaulted as such amount is more than rupees one lakh; hence, the present IB. Petition deserves to for admission. Present petition is found complete for the purpose of its admission.
|