Can Asset Reconstruction Company to which debt is assigned make Application as a financial creditor under section 7 – Edelweiss Asset Reconstruction Co. Ltd Vs. Kalptaru Alloys Private Limited – NCLT Ahmedabad Bench
NCLT held that debt was assigned with knowledge of Debtor (Assignment Deed), Certificate Under Banker’s Book Evidence Act show default, Balance Confirmation falls within Limitation Period. As per original Loan agreement the CD had agreed to pay to the Bank or assignee (In this case ARC). Initiation of proceedings under SARFAESI Act by the Bank is no bar for initiation of insolvency proceedings under the Code in view of overriding effect given to Section 238. Form 2 was signed by proposed Interim Resolution Professional. Hence the Application accepted.