The judgement and order/ Decree of the DRT and the recovery certificate gave a fresh cause of action to the financial creditor to initiate a petition under section 7 of the IBC – State Bank of India Vs. Sujyot Infrastructure Pvt. Ltd. – NCLT Ahmedabad Bench

The Adjudicating Authority holds that it is now a settled law that when the financial creditor has a recovery certificate issued in its favour post the adjudication of their application before the Debt Recovery Tribunal, then a fresh cause of action is initiated to file an application under section 7 of the Insolvency and Bankruptcy Code, 2016. Hence, in the light of the order dated 24.12.2018 of the Debt Recovery Tribunal as well as the recovery certificate dated 13.03.2019, the present petition is well within the period of limitation and financial creditor is entitled to make a claim against the Corporate Debtor.

The judgement and order/ Decree of the DRT and the recovery certificate gave a fresh cause of action to the financial creditor to initiate a petition under section 7 of the IBC – State Bank of India Vs. Sujyot Infrastructure Pvt. Ltd. – NCLT Ahmedabad Bench Read Post »