Can pendency of SARFAESI proceedings be taken into cognisance by Adjudicating Authority in dismissing Section 10 application under IBC – Agroha Paper Industries Pvt. Ltd. Vs. Bank of Maharashtra – NCLAT New Delhi
Hon’ble NCLAT held that there is no quarrel over the fact that Section 10 vests rights on the Corporate Debtor to resolve their insolvency. However, one cannot lose sight of the fact that this protective umbrella over the assets of the Corporate Debtor is not misused or abused in a manner so as to become a tool for deriving undue advantage at the cost of insolvency resolution which objective unequivocally resonates in the preambular aspirations of the IBC.