Canara Bank filed an appeal against the rejection of its claim as a financial creditor by the National Company Law Tribunal (NCLT), New Delhi, in relation to the Corporate Insolvency Resolution Process (CIRP) of AVJ Developers (India) Private Limited. The NCLT had dismissed Canara Bank's application, which sought directions to admit its claim based on housing loans disbursed to homebuyers in AVJ Heights project. The Resolution Professional (RP) had rejected Canara Bank's claim, arguing that the bank did not directly finance the Corporate Debtor and that the homebuyers were the actual financial creditors. The RP also relied on a previous NCLAT judgment, Value Infracon India Private Limited, which held that banks lending to homebuyers cannot be classified as financial
…Canara Bank disbursed housing loans to homebuyers for the AVJ Heights project developed by AVJ Developers (India) Private Limited. A tripartite agreement was executed between Canara Bank, the homebuyers, and AVJ Developers. The agreement contained a clause (Clause 16) stating that in the event of default, the Corporate Debtor/Builder would refund the entire amount advanced by the bank. AVJ Developers defaulted on construction and was admitted into CIRP. Canara Bank filed a claim as a financial creditor, which was rejected by the Resolution Professional (RP). The RP argued that Canara Bank did not directly finance the Corporate Debtor and that the homebuyers were the actual financial creditors. The RP relied on the NCLAT judgment in Value Infracon India Private Limited,
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Corporate Insolvency Resolution Process (CIRP)…
Mr. Anil Tayal was confirmed as the Resolution…
Canara Bank filed an appeal against the rejection of its claim as a financial creditor by the National Company Law Tribunal (NCLT), New Delhi, in relation to the Corporate Insolvency Resolution Process (CIRP) of AVJ Developers (India) Private Limited. The NCLT had dismissed Canara Bank's application, which sought directions to admit its claim based on housing loans disbursed to homebuyers in AVJ Heights project. The Resolution Professional (RP) had rejected Canara Bank's claim, arguing that the bank did not directly finance the Corporate Debtor and that the homebuyers were the actual financial creditors. The RP also relied on a previous NCLAT judgment, Value Infracon India Private Limited, which held that banks lending to homebuyers cannot be classified as financial
…Canara Bank disbursed housing loans to homebuyers for the AVJ Heights project developed by AVJ Developers (India) Private Limited. A tripartite agreement was executed between Canara Bank, the homebuyers, and AVJ Developers. The agreement contained a clause (Clause 16) stating that in the event of default, the Corporate Debtor/Builder would refund the entire amount advanced by the bank. AVJ Developers defaulted on construction and was admitted into CIRP. Canara Bank filed a claim as a financial creditor, which was rejected by the Resolution Professional (RP). The RP argued that Canara Bank did not directly finance the Corporate Debtor and that the homebuyers were the actual financial creditors. The RP relied on the NCLAT judgment in Value Infracon India Private Limited,
…Corporate Insolvency Resolution Process (CIRP)…
Mr. Anil Tayal was confirmed as the Resolution…