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2019 (9) TMI 993 - Tri - Insolvency and BankruptcyMaintainability of application - Basis of proceedings - Initiation of CIRP - Corporate Debtor allegedly committed default in paying the financial debt - whether SBI initiated this proceeding on the basis of RBI circular dated 12.02.2018 or it is independent proceeding? - HELD THAT:- SBI, at their own, did not state anywhere in the application that proceeding is initiated on the basis of and as per the guidelines issued by the RBI in its circular dated 12.02.2018. But the corporate debtor produced on record SBI letter dated 23.08.2018 giving reference of corporate debtor’s proposal of resolution of bad debt dated 16.08.2018 - It is clear from the bank’s letter dated 23.08.2018 that this proceeding under section 7 of I&B Code is initiated against the corporate debtor because there were clear guidelines from the RBI and those contained in its circular dated 12.02.2018. The Hon’ble Supreme Court in DHARANI SUGARS AND CHEMICALS LTD. VERSUS UNION OF INDIA & ORS. [2019 (4) TMI 230 - SUPREME COURT] held RBI circular dated 12.02.2018 to be bad in law and ultra vires. The Apex Court also declared that all proceedings initiated on the basis of that circular are bad in law and non est. As per the case at hand is concerned, it is seen from the evidence on record that this proceeding is also initiated by the bank against the corporate debtor on the basis of RBI Circular dated 12.02.2018 - It is held to be not maintainable. Application rejected.
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