2021 (5) TMI 780

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e IBC, 2016, R/w Rule 11 of the NCLT Rules, 2016, by inter alia seeking to substitute the Applicant in place of Respondent No. 1/Financial Creditor, and permit the Applicant continue prosecuting the instant proceedings against the Respondents/Personal Guarantors, in place of the Respondent No. 1/Financial Creditor etc. 2. Brief facts of the Application, which are relevant to the question, are as follows: (1) Initially, C.P. (IB) No. 104/BB/2020 filed by M/s. Altico Capital India Ltd., U/s 95 of the IBC, 2016, Under Rule 7(2) of the I&B (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019 on the grounds inter alia that the Respondents No. 2 to 4 have fa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... pending proceedings initiated by the Financial Creditor in relation the facility, by following due process of law. (4) The assignment of the Facility has taken place in terms of the Section 5 of the SARFAESI. Accordingly, in terms of the Section 5(2) of SARFAESI, the Applicant is deemed to be the lender and the rights of the Respondent No. 1/Financial Creditor now vests with the Applicant in relation to Facility. Further, it is submitted that in terms of the Section 5(4) of SARFAESI, the instant proceeding can be continued, prosecuted and enforced by the Applicant, and the same will not be abated or be discontinued or be, in any way, prejudicially affected by reason of this assignment. (5) No prejudice will be cause to th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....10th March 2021 when the Purchase Consideration paid by the Applicant under the assignment Agreement was received by the Financial Creditor. Hence, in terms of the Assignment Agreement and also U/s 5 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002, on and from 10th March 2021, the Applicant, being the full and beneficial owner of the Facility and legally entitled to inter alia recover and receive all amounts due thereunder including under the Guarantee, has the right to continue, prosecute and enforce the present proceedings. (3) It is also stated that the Financial Creditor/Respondent No. 1 has no objections to the Applicant being substituted in the place of the Financi....