Case Law Details
CFM Asset Reconstruction Private Limited Vs M.G. Finvest Private Limited (NCLT Delhi)
NCLT Delhi held that ‘financial debt’ is not barred by limitation. Accordingly, application filed by the CFM Asset Reconstruction Private Limited, the Financial Creditor, u/s. 7 of the Code for initiating CIRP against M.G. Finvest Private Limited, the Corporate Debtor, stands admitted.
Facts- The instant Company Petition is filed u/s. 7 of the Insolvency and Bankruptcy Code (IBC) 2016 read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by M/s. CFM Asset Reconstruction Private Limited (“applicant”), a company incorporated under the Companies Act, 2013 and registered with Reserve Bank of India as a Securitization and Asset Reconstruction Company pursuant to Section 3 of SARFAESI Act, 2002 (hereinafter referred to as ‘Financial Creditor’), represented by Shri Kartik Dhir, seeking to initiate Corporate Insolvency Resolution Process (“CIRP”) against M/s M.G. Finvest Private Limited (“Corporate Debtor”).
The present petition was filed on 25.09.2021 before this Adjudicating Authority on the ground that the Corporate Debtor has defaulted to make a payment of Rs. 1025,53,60,198.71/-.
Conclusion- Held that the liability of the Corporate Debtor cannot be extinguished simply because CIRP has been initiated against the Principal Borrower.
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