Reliance Commercial Finance Ltd may revive IRP application if debt is not repaid by Corporate Debtor in 45 Days: NCLAT [Read Order]

The  National Company Law Appellate Tribunal,( NCLT ) Principal Bench at New Delhi has held that no interferences can be made in the proceedings of the Adjudicating Authority and that the Corporate Creditor, Reliance Commercial Finance Ltd. (formerly Reliance Capital Ltd) may revive its application under Section 7 of The Insolvency and Bankruptcy Code, 2016 if the Corporate Debtor fails to repay the debt amount within 45 days.

In the present case, Section 7 Application was filed claiming an amount of Rs. 15,79,41,658/-. On the earlier date, when the Company Petition was taken i.e. on 06th July, 2022, Corporate Debtor came with an offer of Rs. 12.75 Crores to be paid within 45 days on which, the tribunal directed the Financial Creditor to obtain instructions. Amount of Rs. 12.75 Crores which was offered on 06th July, 2022 by the Corporate Debtor was not the entire amount claimed by the Financial Creditor in the Application. But on the next date i.e. 11th July, 2022, when the case was taken, the counsel for the Corporate Debtor submitted that Corporate Debtor is now ready to deposit the entire amount within 45 days.

The Adjudicating Authority after noticing the aforesaid statements, passed over the matter and asked the Financial Creditor to furnish the Bank Account which details were given and the Adjudicating Authority giving details of the Account in the Order, directed the Corporate Debtor to deposit the amount within 45 days.

The Bench of Justice Ashok Bhushan, Justice M. Satyanarayana Murthy and Mr. Barun Mitra, Technical Member opined that, in the facts of the present case, the Adjudicating Authority has only given an opportunity to the Corporate Debtor to deposit the entire defaulted amount for which Section 7 Application was filed, within 45 days with liberty reserved to the Financial Creditor to revive the Section 7 Application in event the amount is not deposited and that the interest of the Financial Creditor is fully protected and dismissed the appeal.

To Read the full text of the Order CLICK HERE

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