Application u/s. 7 of IBC allowed even if proceedings initiated before Debts Recovery Tribunal

Pawan Kumar Vs Central Bank of India & Ors. (NCLAT Delhi) NCLAT Delhi held that initiated proceedings before the Debts Recovery Tribunal does not preclude Financial Creditors to take remedy under Section 7, which is a special remedy provided under the IBC. Facts- The Corporate Debtor was extended a loan by Consortium of Bank, consisting of Oriental Bank of Commerce and Central Bank of India by an Agreement dated 06.03.2017. Central Bank of India declared the account of Corporate Debtor as NPA with effect from 30.09.2017. The Oriental Bank of Commerce, the lead Bank also declared the accoun...