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

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 Read Post »