Ordinarily a Financial Creditor cannot be allowed to intervene in the proceedings under Section 9 of IBC, however, if there are reasons and allegations which require consideration by the Adjudicating Authority intervention can be allowed – CFM Asset Reconstruction Pvt. Ltd. Vs. Saudi Basic Industries Corporation Ltd. – NCLAT New Delhi
NCLAT held that the Appellants be permitted to intervene in the proceedings initiated under Section 9 by the Operational Creditor. Our direction to permit the Appellants to intervene in Section 9 Application has been passed on account of exceptional facts and circumstances, as noticed above and is not to be treated as any declaration of law that a Financial Creditor as a matter of right is entitled to intervene in proceedings initiated by Operational Creditor under Section 9. This order passed by us is in the facts and circumstances, as noticed above