Successor Company gets rights to initiate debt recovery proceedings

The Supreme Court stated last week that the debt recovery proceedings of Industrial Reconstruction Bank of India (IRBI) may be continued against a defaulting company by its successor, Industrial Investment Bank of India Ltd (IIBIL). The new institution was brought into being by the Industrial Reconstruction Bank (Repeal) Act in 1997. In this case, IIBIL vs Jain Cables Ltd, a loan was granted to the company. The latter did not meet the loan obligations and therefore, the creditor moved the Rajasthan high court. It held that the petition was not maintainable because it was moved under the repeal...