Rekha Singh

Where asset size of a Financial Service Provider which on the date of filing the application as per last Balance Sheet was more than Rs. 500 Crore and if it is reduced from Rs. 500 Crore during the pendency of the application as per any further audited Balance Sheet available, whether the Adjudicating Authority shall lose jurisdiction? – Shapoorji Pallonji Finance Pvt. Ltd Vs. Rekha Singh – NCLAT New Delhi

In this important judgment on Financial Service Providers, NCLAT clarified various questions on initiation of CIRP against Personal Guarantor of a Financial Service Provider:
(a) Whether the expression used in the Notification dated 18.11.2019 “asset size of Rs.500 crore or more” can be confined to the loan receivables only or asset shall include non-current and current assets? (b) Last Balance Sheet referred to in the Notification dated 18.11.2019 has to be treated as last audited Balance Sheet from the date the application can be filed? and (c) Where asset size of a Financial Service Provider which on the date of filing the application as per last Balance Sheet was more than Rs.500 Crore and if it is reduced from Rs.500 Crore during the pendency of the application as per any further audited Balance Sheet available, whether the Adjudicating Authority shall lose jurisdiction?

Where asset size of a Financial Service Provider which on the date of filing the application as per last Balance Sheet was more than Rs. 500 Crore and if it is reduced from Rs. 500 Crore during the pendency of the application as per any further audited Balance Sheet available, whether the Adjudicating Authority shall lose jurisdiction? – Shapoorji Pallonji Finance Pvt. Ltd Vs. Rekha Singh – NCLAT New Delhi Read Post »

No insolvency can be initiated against Personal Guarantor of NBFC/Financial Service Providers(FSP), if the concerned NBFC/FSP does not fall within the category of FSP Threshold Notification issued under Section 227 of IBC i.e. not having assets size of Rs. 500 cores or more – Rekha Singh Vs. Shapoorji Pallonji Finance Pvt. Ltd. – NCLT Jaipur Bench

Adjudicating Authority holds that Application(s) for CIRP can be initiated against any Personal Guarantor(s) to a Corporate Debtor irrespective of CIRP against the corporate Debtor, which issue is no longer res integra. Insolvency resolution process(es) can be initiated against the Personal Guarantor(s) of a NBFC / FSP irrespective of CIRP against the NBFC, provided that the concerned NBFC falls within the category of those FSPs having assets size of Rs. 500 cores or more, thus being included in the definition of Corporate Debtor under IBC and being construed as Financial Service Provider wherever the term Corporate Debtor occurs in the Code.

No insolvency can be initiated against Personal Guarantor of NBFC/Financial Service Providers(FSP), if the concerned NBFC/FSP does not fall within the category of FSP Threshold Notification issued under Section 227 of IBC i.e. not having assets size of Rs. 500 cores or more – Rekha Singh Vs. Shapoorji Pallonji Finance Pvt. Ltd. – NCLT Jaipur Bench Read Post »

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