TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether an assignee of a financial debt can be substituted to continue a pending section 7 insolvency proceeding initiated by the assignor.
Analysis: Section 5(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 contemplates that pending proceedings relating to the financial asset do not abate on assignment and may be continued, prosecuted and enforced by the assignee. Order XXII Rule 10 of the Code of Civil Procedure, 1908 recognises continuance of proceedings on devolution of interest, and section 5(7) of the Insolvency and Bankruptcy Code, 2016 includes a person to whom a debt has been legally assigned or transferred within the meaning of financial creditor. On assignment of the debt during pendency of the section 7 application, the assignee stepped into the shoes of the original creditor and was entitled to pursue the pending proceeding.
Conclusion: The assignee was rightly permitted to be substituted and continue the pending section 7 proceeding.
Ratio Decidendi: A legally assigned financial debt carries with it the right of the assignee to continue a pending insolvency proceeding, and such substitution is permissible where the governing statutes do not prohibit continuation on assignment.
TaxTMI 
