Pijush Banerjee Vs IL & FS Financial Services Limited (NCLAT Delhi)
Summary: NCLAT Delhi dismissed the appeal filed by the suspended director of E Village Kendra Limited against the NCLT Kolkata Bench order dated 28.10.2022 admitting the Section 7 application filed by IL & FS Financial Services Limited. The Financial Creditor had sanctioned Infrastructure Term Loans of Rs.90 crore and Rs.280 crore and, following default in payment of interest, demanded payment before filing the Section 7 application in January 2020. The Appellant contended that the application was defective because no certificate under Section 65B(4) of the Evidence Act, 1872 or certified copies of entries under the Bankers’ Books Evidence Act, 1891 had been filed and that the statement of disbursement was prepared by the Financial Creditor itself. NCLAT rejected these objections.
It noted that Regulation 2A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, providing for specified records or evidence of default including certified copies of entries in bankers’ books, was introduced with effect from 13.11.2020 and was therefore not applicable when the Section 7 application was filed. The Financial Creditor had produced the sanction letters, loan agreements and a statement of disbursement supported by an HDFC Bank statement. More importantly, the Corporate Debtor had not denied the sanction letters, loan agreements, disbursement, debt or default.
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