Rajender Kumar Pahwa Vs Canara Bank (NCLAT Delhi)
Held that the statutory right of a Financial Creditor bestowed u/s. 7 of the ‘IBC’ cannot be curtailed to any ‘Inter-Creditor Agreement’ or Consortium agreement executed between the lender banks, as the same was only for regulating the inter se affairs of the consortium and the OTS proposal cannot be claimed by a borrower as a matter of right.
Facts- The instant appeal has been filed by Shri Rajender Kumar Pahwa Suspended Director of the Corporate Debtor (CD) Good Luck Carbon Pvt. Ltd. u/s. 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) assailing the impugned order dated 18th October 2024 passed by Ld. Adjudicating Authority, New Delhi, Court- IV in Company Petition No. 595 of 2023 u/s. 7 of the IBC, whereby the application filed by the petitioner / Respondent No.1 has been accepted and the CIRP process has been initiated against the CD namely Good Luck Carbon Pvt Ltd.
Conclusion- Held that sufficient rather more than sufficient time has been granted to the appellant as well as to the other members of the consortium for the purpose of approval of the OTS proposed by the appellant and since the various OTS proposals earlier proposed by the appellant have already been rejected, we do not see any reason as to why the Adjudicating Authority should have waited for the result of the consideration of this OTS proposal by the superior authorities of the other members of the consortium.
