Ashok Tiwari Vs DBS Bank India (Ltd.) & Anr. (NCLAT Delhi)
The case of Ashok Tiwari Vs. DBS Bank India (Ltd.) & Anr. revolves around an appeal filed by a Suspended Director of the Corporate Debtor challenging an order passed by the National Company Law Tribunal (NCLT), New Delhi Bench (Court-II) on January 15, 2024. This order rejected the application filed by the appellant seeking to recall an earlier order passed on March 25, 2022, which admitted a Section 7 application filed by DBS Bank India Limited.
The background of the case involves M/s. Vyam Technologies Ltd., the Corporate Debtor, which was granted financial facilities by DBS Bank India Limited in 2011. The Corporate Debtor defaulted on its payments, leading DBS Bank India Limited to file a petition before the Debt Recovery Tribunal (DRT). Eventually, a consent decree was passed, acknowledging the debt. Despite this, the Corporate Debtor failed to comply with the terms, leading to the initiation of insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC).
The appellant, representing the Corporate Debtor, challenged the admission of the Section 7 application, arguing that they were denied an opportunity to respond adequately. They contended that although they were served notices, their counsel had not filed a vakalatnama, and therefore, proper representation was not provided. However, the NCLT proceeded with the matter and admitted the application on March 25, 2022.
