SREI Equipment Finance Limited Vs Roadwings International Private Limited (NCLT Kolkata)
NCLT Kolkata held that a secured creditor having possession over the assets of the corporate debtor does not lose its rights to file an application under Section 7 of the Insolvency and Bankruptcy Code.
Facts- The instant company petition is filed under Section 7 of the Insolvency and Bankruptcy Code, for brevity I&B Code, read with Rule 4 of the Insolvency and Bankruptcy (Application to the Adjudicating Authority) Rules, 2016, by “SREI Equipment Finance Limited”, (Financial Creditor) against “Roadwings International Private Limited” (Corporate Debtor) seeking direction to initiate Corporate Insolvency Resolution Process in respect of the Corporate Debtor. The total amount claimed to be in default is of Rs. 12,35,20,095/- and the Date of Default is claimed as on 05.09.2023.
Conclusion- Held that mere possession of the security assets of the corporate debtor, right of a secured creditor to move an application under Section 7 of the I&B Code does not efface, as a Section 7 proceeding is an independent process.
Held that the financial creditor has preferred the present company petition on 04.11.2023 through one Sohan Kumar Jha whose authorization is invalid and ended on the date of approval of the resolution plan by this Adjudicating Authority, i.e., on 11.08.2023. Thus, the company petition is not maintainable due to lack of valid authorization.
