2026 (1) TMI 164

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....d, Mr. Karan Kohli, Ms. Ridhima Mehrotra, Advocates for JC Flowers. ORDER [Per: - Justice Rakesh Kumar Jain (Oral)] This appeal is directed against the order dated 11.06.2024, by which an application bearing IA No. 506 of 2023 and 1052 of 2023 filed by the appellant, under Section 65 of the Insolvency and Bankruptcy Code, 2016 (for short 'Code') with a prayer to dismiss the application filed under Section 7 of the Code by the financial creditor and to initiate the proceedings under Section 65 of the Code has been dismissed. 2. Brief facts of the case are that Dasna Developers Pvt. Ltd. (Borrower) applied for Rs. 125 Crore as loan from Yes Bank Vide facility letter dated 11.08.2017 for construction of a Housing Project. The Yes B....

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....ide at this stage whether the debt in question is a financial debt or not and also whether the disbursal was made or not, as it prima facie appears that the amount transferred was reverted back into the account of Yes Bank. The transactions in question also raise doubts in our mind about the conduct of Yes Bank. Therefore, it will be appropriate to adjudicate the present application of assignment (IA 506/2023) at the time of deciding the main Company Petition. Also, since the transactions in question involve serious allegations of fraud and misappropriation of funds which could have a direct bearing on the section 7 matter and could involve Yes Bank itself, it is necessary that Yes Bank itself should be represented in the main matter and no....

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.... of Section 7 Application". 8. While this appeal was pending, the assignee filed the application bearing IA No. 7864 of 2024, to be impleaded as Respondent in place of Yes Bank. However, no order has been passed in that application so far. 9. Shri Nagrath, Ld. Sr. Counsel appearing on behalf of the appellant has submitted that the Ld. Tribunal has committed an error in dismissing the application bearing IA No. 1052 of 2023. At the same time, Shri Ashish Mohan, Ld. Sr. Counsel appearing on behalf of the assignee has requested this court to allow him to appear in place of assignor to contest the application. In this regard, Counsel for the appellant has submitted that the application bearing IA No.506 of 2023 was filed by the assignee t....