Apresh Garg Vs Indian Bank (Erstwhile Allahabad Bank) & Ors. (NCLAT Delhi)
NCLAT Delhi held that filing of application u/s. 7 of the IBC even after agreeing on restructuring of loan by majority of lenders is justifiable since all Lenders have their independent rights to take such measures as per their Bank’s policy. Accordingly, order admitting application u/s. 7 upheld.
Facts- This Appeal by a Suspended Director of the Corporate Debtor has been filed challenging order dated 30.01.2024 passed by the National Company Law Appellate Tribunal, New Delhi Bench (Court – II) admitting Section 7 Application filed by Indian Bank (Respondent No.1 herein). Aggrieved by order dated 30.01.2024 admitting Section 7 Application and appointing Respondent No.2 as Resolution Professional (“RP”) this Appeal has been filed.
Conclusion- All Lenders have their independent rights to take such measures as per their Bank’s policy regarding realisation of their debt and the fact that Consortium Members in-principle has decided to transfer the account to NARCL, in no manner can hamper the proceedings under Section 7 initiated by the Indian Bank, even much before 29.01.2024. We, thus, are of the view that the fact that Indian Bank has 2.47% proportion in the lending, in no manner preclude the Indian Bank to take its measures as per facility document.
