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TMI Blog2022 (12) TMI 663X X X X Extracts X X X X X X X X Extracts X X X X ..... , Mumbai Bench, Court-V disposing IA No. 3105 of 2022 in C.P. (IB)/414(MB)2022. The brief facts of the case necessary to be noticed for deciding this Appeal are: 2.1. 'Housing Development Finance Corporation Limited' has sanctioned a loan to the Corporate Debtor on 06.09.2016. The Corporate Debtor was classified as Non-Performing Asset on 30.06.2019. 'Housing Development Finance Corporation Limited' issued a Recall Notice on 03.03.2020 and thereafter 'Housing Development Finance Corporation Limited' on 17.02.2022 filed C.P. (IB)/ 414(MB)2022 under Section 7 of the IBC seeking initiation of Corporate Insolvency Resolution Process against the Corporate Debtor. On 30.03.2022, notices were issued in Section 7 Application. 'Housing Development ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. He submits that he has placed reliance on the judgment of the NCLT, Bengaluru Bench dated 26.08.2019 where the Bengaluru Bench has taken the view that although the assignment was made during pendency of the proceeding but it is the prerogative of the Applicant to file miscellaneous application to implead proper and necessary party and the State Bank of India who was Applicant having assigned could not prosecute the Application and the assignee also cannot substitute itself as Applicant. 4. Learned Counsel for the Respondents refuting the submissions of the Learned Counsel for the Appellant submits that by virtue of assignment which happened after filing of the Application by 'Housing Development Finance Corporation Limited', the Respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent has rightly referred to the provisions of Order XXII Rule 10 of CPC which contemplates continuance of proceeding on the basis of devolution of rights with the leave of the Court which is applied generally in civil proceeding and suit. 7. The order of the Bengaluru Bench NCLT dated 26.08.2019 on which reliance has been placed by the Appellant cannot be said to be laying down a correct law to be followed as a precedent. 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 v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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