GVK Energy Vs Axis Bank: IBC Prevails Over RBI Directions

GVK Energy Ltd Vs Axis Bank Limited (NCLAT Chennai) In the case of M/s. GVK Energy Ltd Vs. Axis Bank Limited, adjudicated by the NCLAT Chennai, the fundamental question of hierarchy between the Insolvency and Bankruptcy Code (IBC) and the RBI directions was examined. The court was tasked with determining whether RBI guidelines or the IBC would hold precedence when discrepancies arose in their directives. Axis Bank, along with other lenders, had sanctioned loans to GVK Energy. An inter-creditor agreement (ICA) was formed following RBI directions, wherein GVK Energy committed to quarterly repaym...