The appeal challenges the NCLAT's judgment dated March 26, 2021, which dismissed the appellant's appeal against the NCLT's order dated July 15, 2020. The NCLT order had allowed an application by the respondent (ex-promoter of the Corporate Debtor) and set aside the sale of the Corporate Debtor's property. The appellant bank had initiated SARFAESI proceedings against the Corporate Debtor due to loan defaults. The Corporate Debtor then filed a petition under Section 10 of the IBC, which was admitted by the NCLT. The bank proceeded with an e-auction, and the sale was confirmed. However, the NCLT later set aside the sale, leading to the current appeal.
Indian Overseas Bank (appellant) extended credit facilities to M/S RCM Infrastructure Ltd. (Corporate Debtor). The Corporate Debtor defaulted, and the loan account was classified as NPA on June 13, 2016. On April 18, 2018, the bank issued a demand notice under Section 13(2) of SARFAESI Act. The bank took symbolic possession and issued an e-auction notice on September 26, 2018. The Corporate Debtor challenged this via SA No. 340/2018 before DRT-II, Hyderabad, but no stay was granted. On October 29, 2018, DRT confirmed the sale subject to a deposit of Rs.12 crore by the Corporate Debtor, which they failed to do. On October 22, 2018, the Corporate Debtor filed a petition under Section 10 of IBC. In the first e-auction on November 6, 2018, no bids were received. A second
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The appeal challenges the NCLAT's judgment dated March 26, 2021, which dismissed the appellant's appeal against the NCLT's order dated July 15, 2020. The NCLT order had allowed an application by the respondent (ex-promoter of the Corporate Debtor) and set aside the sale of the Corporate Debtor's property. The appellant bank had initiated SARFAESI proceedings against the Corporate Debtor due to loan defaults. The Corporate Debtor then filed a petition under Section 10 of the IBC, which was admitted by the NCLT. The bank proceeded with an e-auction, and the sale was confirmed. However, the NCLT later set aside the sale, leading to the current appeal.
Indian Overseas Bank (appellant) extended credit facilities to M/S RCM Infrastructure Ltd. (Corporate Debtor). The Corporate Debtor defaulted, and the loan account was classified as NPA on June 13, 2016. On April 18, 2018, the bank issued a demand notice under Section 13(2) of SARFAESI Act. The bank took symbolic possession and issued an e-auction notice on September 26, 2018. The Corporate Debtor challenged this via SA No. 340/2018 before DRT-II, Hyderabad, but no stay was granted. On October 29, 2018, DRT confirmed the sale subject to a deposit of Rs.12 crore by the Corporate Debtor, which they failed to do. On October 22, 2018, the Corporate Debtor filed a petition under Section 10 of IBC. In the first e-auction on November 6, 2018, no bids were received. A second
…The loan account of the…
The appellant Bank…