2020 (2) TMI 1303

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.... 2. The Appellant has filed Appeal against the impugned order dated 27th August, 2019 passed in CP 1003 (IB) / MB / 2019 by the Adjudicating Authority, National Company Law Tribunal, Mumbai Bench. 3. The Adjudicating Authority admitted the application under Section 7 of the 'Insolvency and Bankruptcy Code, 2016' filed by the Respondent No. 1 Allahabad Bank and 'Corporate Insolvency Resolution Process' (CIRP) was initiated. 4. The present Appeal has been filed raising grievances that the Allahabad Bank was part of Consortium in which the leading Bank was IDBI and Allahabad Bank. Reference is made to Inter-se Agreement between these Banks as at Annexure A-9 page 240 dated 15th November, 2010 and Consortium Agreement which is....

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....ber Banks. Appellant states that as per the guidelines of the Reserve Bank of India, It was the Appellant only who classified the account of the Respondent as NPA as on 31st August, 2017. The Learned Counsel has referred to notice dated 05th September, 2017 sent by the Appellant in this regard to the Corporate Debtor (Page 404). According to the Learned Counsel when the account of the Appellant Bank became NPA, it was bound to take action against Corporate Debtor. Company Appeal (AT) (Insolvency) No. 1251 of 2019 8. In our view the Agreement being Inter-se between the Banks the Corporate Debtor cannot take benefit of the Clauses in that agreement, which are binding only the Banks. If there is a default by any member of the Consortium, i....