CIRP - rejection of the claim of the appellant - fraud committed ...

Insolvency and Bankruptcy

January 11, 2024

CIRP - rejection of the claim of the appellant - fraud committed by corporate debtor while executing the "deed of assignment" - The word ‘automatically’ itself empowers the Appellant to put up the claim, declaring that the assignment agreement has been violated by the Appellant by making a false representation that their receivables were not encumbered or charged. The Corporate Debtor has no doubt made the misrepresentation in the deed of assignment which has become evident from the letter of SBI dated 08.06.2017, therefore, finding recorded by the Adjudicating Authority that the termination of the assignment was not valid is neither here nor there. - The RP has committed an error in relying upon Section 21 of the Act, 1996. - AT

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