TMI Blog2018 (9) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... as a contractual right. Rights of an ‘assignee’ are no better than those of the ‘assignor’. It can be, therefore, held that ‘assignor’ assigns its debt in favour of the ‘assignee’ and ‘assignee’ steps in the shoes of the ‘assignor’. The ‘assignee’ thereby takes over the right as it actually did and also takes over all the disadvantages by virtue of such assignment. What cannot be achieved directly by Mr. Sudhakar Mulay, he did it indirectly assigning his debt in favour of the 1st appellant. Mr. Sudhakar Mulay being the ‘related party’, with the assignment of ‘debt’, the disadvantage also goes to the 1st appellant. For the reasons aforesaid, we hold that the issue has been rightly decided by the Adjudicating Authority and no ground has b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the factory premises situated at Aurangabad to State Bank of India. 4. It was at this stage, the company filed an application under Section 10 of the Insolvency Bankruptcy Code, 2016 ((hereinafter referred to as the I B Code ) which was admitted. After filing of the application under Section 10 of the I B Code, Mr. Sudhakar Mulay, Director/Promoter assigned his debt in favour of the 1st appellant on 1st July, 2017. 5. Learned counsel appearing for the appellants refers to Section 5(7) r/w (8) to suggest that the 1st appellant comes within the meaning of Financial Creditor . Reliance was also placed on Section 5(24) of the I B Code which defines related party in relation to a Corporate Debtor which means a Director ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , who is assignee . The debt is in the form of loan from a financial institution , the debtor is referred as a borrower and if the debt is in the form of securities, such as bonds, the debtor is referred to as an issuer . Undisputedly, the assignment is the transfer of one s right to recover the debt of another person as a contractual right. Rights of an assignee are no better than those of the assignor . It can be, therefore, held that assignor assigns its debt in favour of the assignee and assignee steps in the shoes of the assignor . The assignee thereby takes over the right as it actually did and also takes over all the disadvantages by virtue of such assignment. 8. What cannot be achieved directly by Mr. Sudhakar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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