An explicit written agreement of loan is a mandatory instrument for the Financial Creditor, being a NBFC – Desana Impex Ltd. Vs. Brick and Mortar Reality Pvt. Ltd. – NCLT Kolkata Bench
In Section 7 CIRP application, NCLT Kolkata Bench held that:
(i) The Financial Creditor an NBFC registered with the Reserve Bank of India and is bound by the Master Circular issued by the RBI.
(ii) Referred its own judgment in Promtoers & Fincon Pvt. Ltd. (2022) ibclaw.in 219 NCLT and held that it is mandatory on the part of Financial Creditor, being a NBFCs to keep the terms and conditions recorded in writing.
(iii) An explicit written agreement of loan is a mandatory instrument for the Financial Creditor, being a NBFC, to substantiate the nature of transactions between the lender and borrower.
(iv) Judgment in Narendra Kumar Agarwal (2021) ibclaw.in 25 NCLAT will not come to rescue to the Financial Creditor.
(v) Dismissed the Company Petition.
