The appeal challenges the NCLAT's judgment that the application filed by Kotak Mahindra Bank Limited (KMBL) under Section 7 of the Insolvency and Bankruptcy Code (IBC) was time-barred. The NCLAT had reversed the NCLT's order which admitted the application. The core issue revolves around whether a recovery certificate issued by the Debt Recovery Tribunal (DRT) provides a fresh cause of action for initiating CIRP under the IBC, and whether KMBL's application was filed within the limitation period.
During 1993-1994, Ind Bank Housing Limited (IBHL) sanctioned credit facilities to several companies. These borrower entities defaulted, and IBHL classified the facilities as Non-Performing Assets (NPA) in November 1997. IBHL filed civil suits against the borrower entities and Prasad Properties and Investments Pvt. Ltd. (the Corporate Debtor), who stood as a Corporate Guarantor. In 2006, Kotak Mahindra Bank Ltd. (KMBL) acquired IBHL's rights through a Deed of Assignment. KMBL and the borrower entities entered into a compromise in August 2006, recorded by the High Court in March 2007, making the Corporate Debtor jointly and severally liable for Rs. 29,00,96,918/-. KMBL issued a demand notice in September 2007 and a possession notice in January 2008 under the SARFAESI
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Ind Bank Housing Limited (IBHL) sanctioned…
IBHL classified the credit facilities availed…
The appeal challenges the NCLAT's judgment that the application filed by Kotak Mahindra Bank Limited (KMBL) under Section 7 of the Insolvency and Bankruptcy Code (IBC) was time-barred. The NCLAT had reversed the NCLT's order which admitted the application. The core issue revolves around whether a recovery certificate issued by the Debt Recovery Tribunal (DRT) provides a fresh cause of action for initiating CIRP under the IBC, and whether KMBL's application was filed within the limitation period.
During 1993-1994, Ind Bank Housing Limited (IBHL) sanctioned credit facilities to several companies. These borrower entities defaulted, and IBHL classified the facilities as Non-Performing Assets (NPA) in November 1997. IBHL filed civil suits against the borrower entities and Prasad Properties and Investments Pvt. Ltd. (the Corporate Debtor), who stood as a Corporate Guarantor. In 2006, Kotak Mahindra Bank Ltd. (KMBL) acquired IBHL's rights through a Deed of Assignment. KMBL and the borrower entities entered into a compromise in August 2006, recorded by the High Court in March 2007, making the Corporate Debtor jointly and severally liable for Rs. 29,00,96,918/-. KMBL issued a demand notice in September 2007 and a possession notice in January 2008 under the SARFAESI
…Ind Bank Housing Limited (IBHL) sanctioned…
IBHL classified the credit facilities availed…