Maneesh Kumar Singh Vs State Bank of India (NCLAT Delhi)
The case of Maneesh Kumar Singh vs. State Bank of India (NCLAT Delhi) involves an appeal by a suspended director challenging the admission of a Section 7 application by the Adjudicating Authority, NCLT Mumbai Bench, filed by the State Bank of India (SBI). The appellant, Maneesh Kumar Singh, contests the order dated November 10, 2023, citing errors and legal misinterpretations in the admission process. This article delves into the details of the case, the arguments presented by both parties, and the judicial reasoning leading to the final decision.
A. Background and Key Events
1. Financial Facility and Agreements: Advantage Overseas Pvt. Ltd., the corporate debtor, entered into a financial arrangement with SBI, receiving an initial financial facility of Rs. 10 Crores on March 15, 2013. This agreement was formalized through the execution of a Loan-cum-Hypothecation Agreement and a Guarantee Agreement on March 23, 2013. Over time, the financial facility underwent progressive enhancements, with the amount reaching a significant sum of Rs. 6249.50 Crores by April 2016. This expansion of credit reflected the evolving financial relationship between the parties.
2. Default and NPA Declaration: Despite the financial support provided, the corporate debtor encountered financial challenges, resulting in a default. On August 8, 2018, SBI officially declared the account as a Non-Performing Asset (NPA), marking a critical turning point in the financial transaction. This declaration signified the onset of formal debt recovery measures by the creditor, triggering a series of legal and administrative actions aimed at resolving the default and recovering the outstanding amounts.
