RP Empowered to Reject CoC’s Proposal for Bank Guarantees Renewal: NCLAT

IDBI Bank Limited Vs Sumit Binani (NCLAT Delhi) Introduction: The National Company Law Appellate Tribunal (NCLAT) Delhi recently delivered a crucial judgment in the case of IDBI Bank Limited Vs. Sumit Binani. The focus of the case was the power vested in the Resolution Professional (RP) under Section 25(1) of the Insolvency and Bankruptcy Code (IBC) to reject the Committee of Creditors’ (CoC) proposal for the renewal of bank guarantees issued by the Corporate Debtor (CD). Detailed Analysis: The central argument in this case revolves around the necessity of renewing bank guarantees and it...