The case involves an appeal against an order dated 4th February 2021, passed by the Liquidator, rejecting the claim of the Appellant Bank. The Liquidator contended that the Appellant failed to produce necessary documents to prove the existence of a security interest as required by Regulation 21 of the IBBI (Liquidation Process) Regulation 2016 read with Section 52(3) of the IBC, 2016. The Liquidator referred to a judgment by the NCLAT in a similar matter, Volkswagen Finance Private Limited VS. Shree Balaji Printopack Pvt. Ltd., where it was held that mere registration with the Motor Vehicle Authority under Section 51 of the Motor Vehicle Act, 1988, is insufficient for proving the existence of a security interest under Section 52 of IBC, 2016.
Volkswagen Finance Pvt. Ltd. filed an application under Section 7 of the IBC, 2016 against Aarvanss Infrastructure Pvt. Ltd. The erstwhile IRP sought directions for the suspended directors to cooperate and provide necessary information and custody of assets. The liquidator sought prosecution under Chapter VII, specifically Section 70 of the IBC, 2016, due to the non-furnishing of required information by the suspended board of directors. The Liquidator rejected the claim of the Appellant Bank based on the interpretation of security interest registration. The Appellant Bank appealed the Liquidator's decision. The Ministry of Finance issued a notification on 03.05.2019, and the RBI issued a clarification on 04/10/2019, stating that vehicles registered with the VAHAN
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The case involves an appeal against an order dated 4th February 2021, passed by the Liquidator, rejecting the claim of the Appellant Bank. The Liquidator contended that the Appellant failed to produce necessary documents to prove the existence of a security interest as required by Regulation 21 of the IBBI (Liquidation Process) Regulation 2016 read with Section 52(3) of the IBC, 2016. The Liquidator referred to a judgment by the NCLAT in a similar matter, Volkswagen Finance Private Limited VS. Shree Balaji Printopack Pvt. Ltd., where it was held that mere registration with the Motor Vehicle Authority under Section 51 of the Motor Vehicle Act, 1988, is insufficient for proving the existence of a security interest under Section 52 of IBC, 2016.
Volkswagen Finance Pvt. Ltd. filed an application under Section 7 of the IBC, 2016 against Aarvanss Infrastructure Pvt. Ltd. The erstwhile IRP sought directions for the suspended directors to cooperate and provide necessary information and custody of assets. The liquidator sought prosecution under Chapter VII, specifically Section 70 of the IBC, 2016, due to the non-furnishing of required information by the suspended board of directors. The Liquidator rejected the claim of the Appellant Bank based on the interpretation of security interest registration. The Appellant Bank appealed the Liquidator's decision. The Ministry of Finance issued a notification on 03.05.2019, and the RBI issued a clarification on 04/10/2019, stating that vehicles registered with the VAHAN
…The initial app…
The Ministry of Finance issued a notification…