Deepak Raheja & Anr. Vs IDBI Trusteeship Services Ltd. & Anr. (NCLAT Delhi)
NCLAT Delhi held that application under section 7 of the Insolvency and Bankruptcy Code [IBC] filed by the security Trustee is duly admissible since application was filed after obtaining valid authorisation from the lender. Accordingly, appeal dismissed.
Facts- This Appeal has been filed by the Suspended Director of the Corporate Debtor (“CD”) – Advantage Raheja Hotels Private Limited challenging the order dated 17.12.2024 passed by National Company Law Tribunal, Mumbai Bench, Court-II admitting Section 7 application filed by IDBI Trusteeship Services Limited (“IDBI Trusteeship”). By order dated 17.12.2024, Corporate Insolvency Resolution Process (“CIRP”) has been commenced against the CD and Shri Jayesh Natvarlal Sanghrajka has been appointed as IRP. Aggrieved by which order, this Appeal has been filed.
Conclusion- Held that we do not see any substance in the submission of the Appellant that there was no authorisation by Omkara to the IDBI Trusteeship to initiate proceedings under Section 7. Section 7 application, thus, was initiated on the basis of entitlement of the IDBI Trusteeship through the Trusteeship Agreement as well as specific written authorisation by the Omkara subsequent to assignment in its favour.
Held that we do not find any error in the order admitting Section 7 application against the Corporate Guarantors. As noted above, initiation of the CIRP against the Principal Borrowers has already been affirmed by this Tribunal by dismissing the Appeal(s) filed by the Suspended Directors. No infirmity can be found in initiation of CIRP against the Corporate Guarantors. We do not find any merit in the Appeal. The Appeal is dismissed.
