Litigation in the SARFAESI and DRT does not preclude the Bank to take specific remedy provided under Section 7 of IBC – Laxmi Engineering Industries (Bhopal) Pvt. Ltd. Vs. Canara Bank – NCLAT New Delhi
September 4, 2023
Hon’ble NCLAT held that:
(i) Insofar as the submission of the Appellant that Bank has approached the multiple forums including the DRT is concerned, it is well settled that litigation in the SARFAESI and DRT does not preclude the Bank to take specific remedy provided under Section 7, hence, the said submission does not help the Appellant.
(ii) As far as the last submission of the Appellant that the Corporate Debtor is taking steps for the OTS settlement, we only observe that in event any OTS is accepted, it shall be open for the Appellant to file an Application before the Adjudicating Authority for closing the settlement under Section 12A which may be considered in accordance with law.