Whether the Registration of assignment is mandatory under Section 7 of the IBC – Manavta Tradelink Pvt. Ltd. Vs. Manikaran Vincom Pvt. Ltd. – NCLT Kolkata Bench
In this Section 7 application, the dispute is only with the legality of the assignment in the absence of the registration of the assignment. NCLT Kolkata Bench held that:
(i) Registration of assignment is not mandatory. Even otherwise the Corporate Debtor never disputed the assignment till date. The Corporate Debtor was in correspondence with the applicant seeking time to repay the loan with interest and therefore, at this stage, the Respondent cannot question the validity of assignment.
(ii) allowed application filed under Section 7 of the Code and initiated CIRP against Manikaran Vincom Pvt. Ltd..
