TMI Blog2022 (12) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of devolution of rights with the leave of the Court which is applied generally in civil proceeding and suit. As has been observed rightly by the Adjudicating Authority, there is no prohibition in the IBC or any of the Regulations from continuing the proceeding by an assignee. Section 5(7) of the IBC which defines Financial Creditor also includes a person to whom such debt has been legally assigned or transferred to. By virtue of assignment, Respondent No.1 become the Financial Creditor and having stepped in the shoes of Housing Development Finance Corporation Limited , it has every right to continue the proceeding which was initiated by Respondent No.2. - Comp. App. ( AT ) ( Ins. ) No. 1449 of 2022 - - - Dated:- 13-12-2022 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .A. No. 3105/2022 on 08.10.2022 seeking to be substituted as Financial Creditor in place of original Applicant and to be permitted to pursue the C.P.(IB)/414(MB)2022 filed by the Housing Development Finance Corporation Limited . On the said I.A, the Adjudicating Authority has passed an order on 01.11.2022 allowing the Application filed by Assets Care and Reconstruction Enterprise Limited for substitution of its name on the basis of assignment. Before the Adjudicating Authority, an order passed by the co-ordinate Bench of NCLT, Bengaluru in I.A. No. 200 of 2019 was also filed. However, the Adjudicating Authority took the view that there is no binding precedent from higher forum and there is no express prohibition in the code preventing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est in financial assets.- .. (4) If, on the date of acquisition of financial asset under sub-section (1), any suit, appeal or other proceeding of whatever nature relating to the said financial asset is pending by or against the bank or financial institution, save as provided in the third proviso to sub-section (1) of section 15 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986) the same shall not abate, or be discontinued or be, in any way, prejudicially affected by reason of the acquisition of financial asset by the [asset reconstruction company], as the case may be, but the suit, appeal or other proceeding may be continued, prosecuted and enforced by or against the [asset reconstruction company], as the case may ..... X X X X Extracts X X X X X X X X Extracts X X X X
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