The appeal was filed by Union Bank of India (erstwhile Andhra Bank, now merged) under Section 61 of the Insolvency and Bankruptcy Code, 2016, against the order dated 20.08.2020 passed by the Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench) in I.A No. 335 of 2020 in CP(IB) No.297/7/HDB/2017. The Adjudicating Authority disposed of the Interlocutory Application and directed Respondent No.1 bank not to take any coercive steps such as sale of the properties mortgaged by the Appellant companies in favor of Respondent No.1 bank till the completion of Liquidation proceedings of the Corporate Debtor.
Union Bank of India (erstwhile Andhra Bank) filed an appeal against the order of the Adjudicating Authority (NCLT, Hyderabad) dated 20.08.2020. The Adjudicating Authority had directed the bank not to take coercive steps to sell properties mortgaged by the respondent companies until the liquidation proceedings of the corporate debtor were completed. The respondents had provided corporate guarantees and mortgaged properties as collateral for the corporate debtor's financial debt. The appellant bank initiated SARFAESI proceedings and issued demand and possession notices. The respondents objected, arguing that Section 238 of the IBC supersedes SARFAESI. The Adjudicating Authority considered selling the corporate debtor as a going concern. The key fact is that the
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State Bank of India…
Adjudicating A…
The appeal was filed by Union Bank of India (erstwhile Andhra Bank, now merged) under Section 61 of the Insolvency and Bankruptcy Code, 2016, against the order dated 20.08.2020 passed by the Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench) in I.A No. 335 of 2020 in CP(IB) No.297/7/HDB/2017. The Adjudicating Authority disposed of the Interlocutory Application and directed Respondent No.1 bank not to take any coercive steps such as sale of the properties mortgaged by the Appellant companies in favor of Respondent No.1 bank till the completion of Liquidation proceedings of the Corporate Debtor.
Union Bank of India (erstwhile Andhra Bank) filed an appeal against the order of the Adjudicating Authority (NCLT, Hyderabad) dated 20.08.2020. The Adjudicating Authority had directed the bank not to take coercive steps to sell properties mortgaged by the respondent companies until the liquidation proceedings of the corporate debtor were completed. The respondents had provided corporate guarantees and mortgaged properties as collateral for the corporate debtor's financial debt. The appellant bank initiated SARFAESI proceedings and issued demand and possession notices. The respondents objected, arguing that Section 238 of the IBC supersedes SARFAESI. The Adjudicating Authority considered selling the corporate debtor as a going concern. The key fact is that the
…State Bank of India…
Adjudicating A…