TMI Blog2019 (11) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... rson , it can also not be a CD. Further, since Part 2 of the IBC applies to Insolvency Resolution and Liquidation for corporate persons , and since a financial service provider, including an NBFC, is excluded from the definition of a corporate person and CD, provisions of Part 2 of the IBC do not become applicable in the case of a financial service provider. Hence, no creditor can seek initiation of corporate insolvency resolution process against any financial service provider. We are in agreement with the arguments presented by the respondent CD and consider it as a financial service provider and a Non-Banking Financial Institution, being registered as such by the RBI, and that for this reason it falls outside the purview of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Code of 2016. Hence, the present petition. 2. As per the reply filed on behalf of the CD, M/s. Purbanchal Trade and Industries Ltd. to the above petition, it is submitted that the same was required to be rejected as it was not maintainable, even without going into the merits, qua the present CD who is a Non-Banking Financial Company (NBFC). For this reason, the provisions of IBC cannot be invoked against it. It is stated that the RBI is a financial sector regulator, as defined in Section 3(18) of the Code of 2016 and it has issued a certificate, bearing No.00.0023, registering it as an NBFC and hence the present petition was not maintainable. To support its case reference has been made to the case of HDFC Ltd. v. RHC Holida ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered the above submissions. On an examination of the provisions contained in the Code of 2016, it is seen that as per Section 3(8) of the Code of 2016, a CD means a corporate person who owes a debt to any person, and as per Section 3(7), a corporate person is a company, a LLP or any other person, but shall not include any financial service provider. That is to say that since a financial service provider is excluded from the definition of corporate person , it can also not be a CD. Further, since Part 2 of the IBC applies to Insolvency Resolution and Liquidation for corporate persons , and since a financial service provider, including an NBFC, is excluded from the definition of a corporate person and CD, provisions of Part 2 of the IBC d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Code. 6. Keeping the above legal position in mind, it is seen that the objects contained in the Memorandum and Articles of Association of the CD M/s. Purbanchal Trade and Industries Ltd. mention such financial activities as are carried on by NBFCs. Further, it is seen that the financial service regulator, within the meaning of Sec. 3(18) of the Code of 2016, namely the Reserve Bank of India, has issued a certificate (bearing No.08.0023) registering and entitling it to carry on the business as a Non-Banking Financial Institution (NBFI). The decision of the Hon'ble Andhra Pradesh High Court in Karvy Consultants (supra) referred to by the petitioner is not in the context of Section 7 of the IBC, but for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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