As long as a Corporate Debtor is categorised or registered under the relevant provisions for the Financial Service Provider, the Section 7 of IBC cannot be invoked, irrespective of the details surrounding the conditions attached to the FSP | A question relating to violation of the certificate as provided by the RBI, falls beyond the purview of NCLT – Sital Leasing and Finance Ltd. Vs. Gracious Portfolio Pvt. Ltd. – NCLT New Delhi Bench
January 2, 2025
The NCLT New Delhi Bench held that the as long as the FSPt is categorised or registered under the relevant provisions for the Financial Service Provider, the provisions of Section 7 of the Code cannot be invoked against the FSP, irrespective of the details surrounding the conditions attached to the FSP. The settled position of law, as elucidated hereinabove, is that such a question relating to violation of the certificate as provided by the Reserve Bank of India, falls beyond the purview of this Adjudicating Authority.