Rehabilitation by giving financial assistance binds consenting lenders and requires a designated bank to disburse agreed support. Section 424E permits schemes for rehabilitating sick industrial companies by financial assistance from governments, banks or financial institutions; schemes must be circulated to required providers for consent, which is deemed if not given; unanimous consent enables the Tribunal to sanction a binding scheme; designated financial institution and bank must disburse agreed assistance promptly; absence of consent permits the Tribunal to adopt alternative measures including winding up.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Rehabilitation by giving financial assistance binds consenting lenders and requires a designated bank to disburse agreed support.
Section 424E permits schemes for rehabilitating sick industrial companies by financial assistance from governments, banks or financial institutions; schemes must be circulated to required providers for consent, which is deemed if not given; unanimous consent enables the Tribunal to sanction a binding scheme; designated financial institution and bank must disburse agreed assistance promptly; absence of consent permits the Tribunal to adopt alternative measures including winding up.
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