The case involves appeals against a judgment by the National Company Law Appellate Tribunal (NCLAT) regarding whether the appellants can be classified as ‘Financial Creditors’ under the Insolvency and Bankruptcy Code, 2016 (IBC). The issue arose during the Corporate Insolvency Resolution Process (CIRP) of Reliance Infratel Limited (RITL), where Doha Bank challenged the admission of the appellants' claims as Financial Creditors. The appellants relied on Deeds of Hypothecation (DoH) executed jointly by RCom entities, including RITL, to create a charge over their property for securing the repayment of facilities advanced by the appellants. The NCLAT held that the DoH is not a deed of guarantee and set aside the NCLT's order, leading to the current appeals.
1. Doha Bank challenged the admission of claims by several appellants as Financial Creditors during the CIRP of Reliance Infratel Limited (RITL).
2. The appellants' claims were based on Deeds of Hypothecation (DoH) executed by RCom entities, including RITL, to secure repayment of facilities advanced to RCom and RTL.
3. The DoH contained a clause (5(iii)) where the Chargors (including RITL) agreed to accept the Security Trustee's account of sales and realization and to pay on demand any shortfall or deficiency.
4. The NCLT initially upheld the appellants' status as Financial Creditors, but the NCLAT reversed this decision, holding that the DoH was not a deed of guarantee.
5. The appellants argued that clause 5(iii) of the DoH constituted a guarantee under Section 126 of the
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The Committee of Creditors (CoC) approved a…
The NCLT approved the Resolution Plan without…
The case involves appeals against a judgment by the National Company Law Appellate Tribunal (NCLAT) regarding whether the appellants can be classified as ‘Financial Creditors’ under the Insolvency and Bankruptcy Code, 2016 (IBC). The issue arose during the Corporate Insolvency Resolution Process (CIRP) of Reliance Infratel Limited (RITL), where Doha Bank challenged the admission of the appellants' claims as Financial Creditors. The appellants relied on Deeds of Hypothecation (DoH) executed jointly by RCom entities, including RITL, to create a charge over their property for securing the repayment of facilities advanced by the appellants. The NCLAT held that the DoH is not a deed of guarantee and set aside the NCLT's order, leading to the current appeals.
1. Doha Bank challenged the admission of claims by several appellants as Financial Creditors during the CIRP of Reliance Infratel Limited (RITL).
2. The appellants' claims were based on Deeds of Hypothecation (DoH) executed by RCom entities, including RITL, to secure repayment of facilities advanced to RCom and RTL.
3. The DoH contained a clause (5(iii)) where the Chargors (including RITL) agreed to accept the Security Trustee's account of sales and realization and to pay on demand any shortfall or deficiency.
4. The NCLT initially upheld the appellants' status as Financial Creditors, but the NCLAT reversed this decision, holding that the DoH was not a deed of guarantee.
5. The appellants argued that clause 5(iii) of the DoH constituted a guarantee under Section 126 of the
The Committee of Creditors (CoC) approved a…
The NCLT approved the Resolution Plan without…