# In the matter of Rahul Kumawat vs. Bank of India & Anr.

> NCLAT judgment dated 2024-04-26. Citation: TCN-2024-NCLAT-00478. This is an appeal against the order dated 04.04.2024 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 26 Apr 2024
- **Citation:** TCN-2024-NCLAT-00478
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rahul-kumawat-vs-bank-of-india-anr-1bf86fb7

## Summary

### Background

This is an appeal against the order dated 04.04.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Indore Bench), which admitted an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) by the Respondent/Bank of India (Financial Creditor). The corporate debtor's account was declared NPA on 30.09.2017. This is the second round of litigation, with a previous order dated 14.11.2022 setting aside the admission order dated 05.03.2020 and remanding the case back to the Adjudicating Authority.

## Facts

The Bank of India filed an application under Section 7 of the IBC against Rahul Kumawat, the Corporate Debtor, which was admitted by the Adjudicating Authority. The Corporate Debtor's account was classified as NPA on 30.09.2017. The Corporate Debtor argued that the NPA classification was incorrect and not in compliance with RBI circulars. The Corporate Debtor claimed that the Bank had not properly accounted for payments made and had artificially created a default situation. The Corporate Debtor also argued that it was an MSME and entitled to certain benefits under RBI guidelines. The Bank contended that the Corporate Debtor had defaulted on its payment obligations and that the RBI circulars were not applicable. The total outstanding amount was Rs. 11,57,89,697/- as on

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority properly considered the objections raised by the Corporate …

**Ratio:** The Adjudicating Authority must consider all objections and contentions raised by the

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**Reasoning:** The NCLAT found that the Adjudicating Authority's finding that the default had been

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**Interpretation:** This emphasizes the importance of due process and a thorough examination of

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**Application:** In this case, the NCLAT found that the Adjudicating Authority had not

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## Parties

- **Judges:** Rakesh Kuma…; Barun M…; +1 more
- **Appellants:** Rahul Ku…
- **Respondents:** BANK OF INDIA &…
- **Advocates:** Krishnendu…; Sanyat…; +6 more

## Timeline

- **2024-04-04 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal, Indore Bench) passed an order…
- **2022-11-14 — Previous Order…**: The NCLAT set aside the order of admission dated 05.03.2020 and remanded the case back to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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