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2019 (3) TMI 1235 - NATIONAL COMPANY LAW TRIBUNAL PRINCIPAL BENCH, NEW DELHICorporate Insolvency Resolution Process - consortium finance - Application by lead banker - Applicant bank filed an OA for recovery which is pending before the Debt Recovery Tribunal - HELD THAT:- The Letter of Indian Banks Association dated 19.04.2017, wherein the IBA has clearly stated that the Committee has concluded that the Resolution plan does not meet the stipulations under the S4A Scheme. The respondent is well aware of the same and vide letter dated 21.04.2017 acknowledged the same. Also the rejection of the resolution plan under S4A Scheme was also recorded in the Minutes of Consortium/JLF meeting held on 09.05.2017, wherein it was also declared that the accounts of the Corporate Debtor with all the lenders have been declared as NPA in their respective books/ledgers. Further the members of the consortium have decided to appoint IRP and the same has been duly recorded in the JLF meeting held on 12.06.2018. Since most of the exposure of the Respondent company was by way of consortium finance wherein the applicant was lead bank and there is no bar for the applicant to approach this Hon'ble Tribunal for initiating resolution process without seeking consent of other lenders. As per the circular dated 26.02.2018, all such restructuring schemes have been cancelled/ withdrawn by RBI where implementation had not taken place, including S4A Scheme. All requirements of Section 7 of the Code for initiation of Corporate Insolvency Resolution Process by a Financial Creditor stand fulfilled. - this petition is admitted.
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