Yes Bank Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s Ideal Real Estate Private Limited, the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) due to a default in loan facilities. The Corporate Debtor had availed significant loan facilities, which were subsequently defaulted upon, leading to the account being classified as a Non-Performing Asset (NPA). The Corporate Debtor raised preliminary objections, arguing that the application was not maintainable, there was no creditor-debtor relationship, and the Financial Creditor was pursuing parallel recovery remedies under the RDDBFI Act and SARFAESI Act, which should bar the IBC proceedings.

Yes Bank Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s Ideal Real Estate Private Limited, the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) due to a default in loan facilities. The Corporate Debtor had availed significant loan facilities, which were subsequently defaulted upon, leading to the account being classified as a Non-Performing Asset (NPA). The Corporate Debtor raised preliminary objections, arguing that the application was not maintainable, there was no creditor-debtor relationship, and the Financial Creditor was pursuing parallel recovery remedies under the RDDBFI Act and SARFAESI Act, which should bar the IBC proceedings.