Mere institution of a civil suit or its pendency is not a situation similar to or that envisaged in para 88 of Vidarbha Industries Power Ltd. judgment – Canara Bank v. BBT Elevated Road Pvt. Ltd. – NCLT Kolkata Bench
December 22, 2023
NCLT Kolkata Bench held that though the word “example” has been used in the Vidarbha Industries Power Limited v. Axis Bank Limited (2022) ibclaw.in 91 SC, there has to be a situation/akin to award/decree in favour of the Corporate Debtor before the admission of an application under Section 7 of the Code can be considered to be kept in abeyance by the Adjudicating Authority. Mere institution of a civil suit or its pendency, in our opinion, is not a situation similar to or that envisaged in para 88 of the judgment of the Hon’ble Supreme Court as referred by the Corporate Debtor.