IDBI Bank Ltd Vs Silver Stallion Ltd (NCLAT Delhi)
In this case, the Financial Creditor appealed against a blanket concession order passed by the Adjudicating Authority in a liquidation proceeding of a Corporate Debtor (CD). The CD had loans of approximately Rs. 428 Crores from the appellant and was liquidated, with its assets sold to a Successful Auction Purchaser as a going concern. The appellant received around Rs. 7 Crores against its claims. The Auction Purchaser had sought 21 concessions, including a critical one requiring the CD’s accounts to be regularized and classified as “standard.” The appellant argued that it had discharged its charge over secured assets and issued a No-Dues Certificate, asserting that the reclassification could affect its rights to pursue the Personal Guarantors. The Tribunal held that the purchaser’s interest was limited to obtaining an encumbrance-free title and could not interfere with the creditor’s rights. Consequently, the appeal was allowed, and the Adjudicating Authority’s order granting the specific concession for account standardization was set aside.
FULL TEXT OF THE NCLAT JUDGMENT/ORDER
This appeal is preferred by the Financial Creditor who has approached this Tribunal having felt aggrieved by a blanket concession order passed by the Adjudicating Authority in an application filed by the Successful Auction Purchaser in a liquidation proceeding in I.A. No. 4424 of 2024.
