Financial creditors can initiate CIRP after recovery certificate

Tottempudi Salalith Vs State Bank of India & Ors. (Supreme Court of India) Supreme Court held that the recovery certificate itself would give rise to a fresh cause of action entitling a financial creditor to initiate Corporate Insolvency Resolution Process (CIRP). Facts- The appellant is the managing director of the Respondent No.2, Totem Infrastructures Limited (corporate debtor) against whom proceedings have been initiated on account of default in repaying financial facilities extended to them by several banks in the form of loans and bank guarantees. The total claim on account of defaul...